savings accounts???

I have literally just left sixth form (finished on monday!!) and since im going on a gap year, i want to have a savings account for uni. i dont know what any of it means??
i've been applying to a bunch of jobs, and have some interviews lined up, so before i start working properly, (i have a job already but im working like only 6 hours a week TT), i want to know where im going to put my money so i can start saving.

I am terrible with money, like i cannot save money at all, and if i have a savings account i can go into at any time, im worried i will just spend it all.. so im thinking, i could have 2 savings accounts? After looking at all the types, would it be a good idea to have an instant access saver, with lower interest rates, that i can save for short term purchases, and then a fixed-rate savings, with a higher interest rate, for longer term uni savings? the problem is, i would have to have one with a smaller minimum deposit, as i doubt even with a full time job, i will be earning that much money as i am 18 with little experience.

Idk if this is a good idea to have multiple accounts, and i dont really know what other people do as i have never really had to organise my money that much.

I also want to have some tips for self restraint, every time i try saving for something i want, i always spend the money on stupid stuff. I think not being able to go out as much( because 1. all of my friends are at uni 2. i live in the middle of nowhere so have to walk 20 mins to the bus stop as i cant drive, and there are only 2 buses a day and 3. if i have more shifts, i cant go out in the week) would help, as i cant spend my money on food when i go out, but online shopping is still a problem for me.

i am currently with nationwide, and would prefer to stay with them for organisation, but i am also looking to switch to a current account, as my current account is only for under 21s...

basically what im asking is
1. is having 2 savings accounts a good idea, and if not, what should i do
2. how to i restrain making lots of small stupid purchases
3. what are good banks that i can have a current accounts and savings at the same time...
and 4. does anyone have any other advice for me for organising my finances so im not super unprepared money-wise for uni

Thank youuuu

Reply 1

Wanderingmind2

You can have as many savings accounts as you wish with the majority having the minimum limit as £1, there’s plenty of very well paying easy access accounts on the market right now (I use Chip for my easy access which is an app that pays 4% interest) if possible, keep savings away from the ‘big banks’ as these quite often pay poorly. As long as the provider you choose has FSCS protection (which all mine do), you’re money is fully secure up to £85,000.

My advice is to keep Nationwide as it is your longest account, even if you won’t use it’s best to keep there as when you apply for any credit they look for customer longevity which you have with Nationwide. I have 4 current accounts, 2 saving accounts and 1 credit card (each has its own purpose and I get quite a lot of rewards each month for having these). Halifax is my main bank and longest.

If you want me to be honest, I fully recommend Chase as an app for everything. You get 1% back on most purchases, 3.8% on savings and 5% on round-ups and not to mention fee-free overseas. Get your student finance paid in to Nationwide and transfer the money across. All managed within the same app.

A student current account is good for you should you want the overdraft but if you know you’ll waste it then please don’t get yourself in a position where you’re living month to month and loan to loan.

I hope this helps and good luck with your studies.

Reply 2

martin7

Original post by beefreya

I am terrible with money, like i cannot save money at all, and if i have a savings account i can go into at any time, im worried i will just spend it all.. so im thinking, i could have 2 savings accounts? After looking at all the types, would it be a good idea to have an instant access saver, with lower interest rates, that i can save for short term purchases, and then a fixed-rate savings, with a higher interest rate, for longer term uni savings? the problem is, i would have to have one with a smaller minimum deposit, as i doubt even with a full time job, i will be earning that much money as i am 18 with little experience.

It's fine to have more than one savings account, and splitting money for longer-term saving versus short-term saving sounds like a sensible approach.

One way to get higher rates is to lock away your money for a fixed term (fixed-term savings products tend to be called "bonds" rather than "accounts"), but that has the disadvantage that you can't generally get access to that money until the end of that term. For example, you can -- today -- get a one-year bond paying 5.61% on a deposit of £1. The best instant-access account (at least, on the tables I'm looking at) pays 4.15%.

Many of the higher-paying instant access accounts have limitations on the number of withdrawals you can make (for example, they might only allow two or three withdrawals per year).

If you've got money in savings that's easily accessible, then it can be tempting to spend it. To some extent, you need to use willpower and self-discipline to stop yourself doing this. Another approach is to make it more difficult to get hold of the money. For example, if the savings account is with the same bank as your current account, the bank's app will make it easy to move the money across. If your savings are with a different bank, perhaps one that just provides savings accounts rather than current accounts, the hassle of logging into a separate account and then arranging a transfer, where the funds might take several hours to be transferred, might be enough to dissuade yourself from making the transfer.

3. what are good banks that i can have a current accounts and savings at the same time...

It's very likely that you won't get the best savings rates from a bank that offers current accounts. Unless you've got money tied-up in a fixed term bond (or a savings product where you need to give notice), you can normally get your savings in any bank/building society transferred into your current account (at the same or another bank/building society) the same day or at worst within two banking days.

Reply 3

Zarek

A current and two (or more) savings accounts, one instant access and one fixed term is a great idea. The fixed term generally prevents you dipping in to it and pays a better rate of interest. You could alternatively go for a longer term investment in a shares ISA. All the main high street banks offer a variety of accounts, each has their own features. I have found Halifax pretty good, there is a regular savings account that you can pay in each month and get a reasonable rate of interest if you save for a year. There is also a nice feature where you can create as many instant access savings accounts as you want and give each a name, the interest rate isn’t great though. For a good interest rate instant access savings account Coventry Building Society is great. You can open one on line and transfer money in from your current account and the fact you have to transfer it back, although it’s easy, is a bit of a barrier to frivolous spending.

Regular saving is a key to feeling in control and being able to afford bigger things. Start with paying a minimum of 10% of your income and increase it bit by bit as your income rises, on the basis you don’t miss what you haven’t had. Get as much free advice as you can and think about longer term investments like Lifetime ISA and pensions