As you’ll probably know by now, I’m a liiiiittle bit money obsessed. I love finding ways to make extra cash and watching my money grow. As a result, I probably check my bank balance far too often in the hope my finances will have magically improved since the last time I looked. Well, I was in for a pleasant surprise earlier today because I checked my bank to discover I’ve earned more than £25 in interest on my Santander 123 current account this month.
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Savings
Please note that some of the interest rates and bank account benefits outlined in this post have changed since this was written. You can find new rates, correct as of the 28th July 2017, in this new post about multiple bank accounts.
Beanie Babies, Pokémon cards and The Simpsons memorabilia - I’ve had my fair share of collections over the years.
Now that I’m 26, I’m pleased to announce I’m no longer hoarding Pogs or gel pens and instead, I’m collecting something really sensible - bank accounts. Seriously. What has happened to me?
Life & Style Savings
The Realisation I Don’t Actually Have To Get Married Has Made Me Feel £20,000 Richer
October 2016 update: Jake and I have split up since I wrote this post. Cringe. I’ve not yet decided what to do with posts like this, but for now I’ll leave them as they are.
Ever since I was a child I always assumed I’d get married one day. I never put too much thought into it, I just always assumed I’d get a good job, buy a big house, get married, have kids, and live the perfect life.
Thankfully, Jake and I are in agreement that we’d like to spend the rest of our lives together. We’ve talked about who we’d invite to our wedding and we’ve bickered over the names of our future kids. He wants to call his son John. Jake’s last name is Smith. I’m not letting my kid share his name with ale and Pocohontas’ boo. I digress.
With our Instagram feeds urging us to ‘live life to the full’ and the tattoos on our friends’ wrists demanding we ‘carpe diem’, we’re constantly being told to focus on the present moment rather than worry about the future.
But could this YOLO attitude to money be damaging in the long run? As important as it is to make the most of the time we have now, it’s equally vital to plan ahead so that we can set ourselves up for a strong future financially. So how can you get your financial shit together?
Santander has slashed the interest rate on its Help to Buy ISA from 4% down to 2% for new customers. The change comes just weeks after Halifax reduced its interest rates in a similar fashion.
Santander 123 and Santander Select customers are able to access a slightly higher interest rate of 2.5% when they open a Help to Buy ISA with the same bank.
Halifax has slashed the interest rate of its Help to Buy ISA from 4% to just 2.5% for new customers. Existing customers who already have a Help to Buy ISA with Halifax will be unaffected by the change and will continue to earn the higher interest rate.
If you’ve not already got a Help to Buy ISA but you’ve been thinking of opening one to save for a deposit, your next best bet might just be Santander which continues to offer 4% interest.
Jake and I are hoping to move in together in the next few months and when we’re not drooling over overpriced rental properties on Zoopla or trying to decide between a furnished or unfurnished flat, we’re discussing our finances. It’s not uncommon for couples to open joint bank accounts when they move in together in order to pay the bills, simplify their expenditure and gain a sense of ‘unity’. However, after much discussion, Jake and I have decided this isn’t the best option for us. For now, we’re keeping our finances firmly separate.
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It’s becoming increasingly common for sensible savers to open multiple bank accounts so they can make the most of savings interest. However, with many banks demanding that savers meet certain criteria in order to benefit from generous interest rates and regular rewards, some people find that they’re unable to make the most of the potential benefits.
August 2016 update: Santander is planning to reduce the interest rate on Santander 123 to 1.5% in November.
Santander 123 has long been a favourite amongst savers looking for a versatile current account with a generous interest rate.
With the account paying 3% interest on balances between £3,000 and £20,000, it’s easy to see why it’s so popular.
However, in January this year the bank announced that new and existing account holders would need to pay a £5 a month fee in order to keep the account.
Considering rival bank Halifax offers the Reward Current Account which rewards savers with £5 a month rather than taking it away, is the Santander 123 current account really worth it? Let’s investigate…