Bank Account Help (UK)

coughs

coughs

coughs

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Joined
9 Aug 2010
Posts
710
Hello,

I’ve had a Barclays "Card Cash account" since I was 18 and it has done me fine but within the next 5 years I would like to apply for a mortgage. It looks like a normal Barclays account has some benefits which apply for mortgages and various other things which I don’t understand like overdrafts etc. Can someone please advise me and explain, give me any tips on what should I do? Should I upgrade? Thank you :)

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Just because it's miles above the best so doesn't even really need comparing. Gives cashback on household bills and the like plus up to 4% interest on balances up to £20k which beats every savings account.

I actually bank with Lloyds but have just applied for the 123 to solely use as a savings account.

I also bank with Barclays for business and they're terrible, and have also banked with Natwest, Halifax and HSBC in the past who were equally bad.
 
Russinating said:
Just because it's miles above the best so doesn't even really need comparing. Gives cashback on household bills and the like plus up to 4% interest on balances up to £20k which beats every savings account.

I actually bank with Lloyds but have just applied for the 123 to solely use as a savings account.

I also bank with Barclays for business and they're terrible, and have also banked with Natwest, Halifax and HSBC in the past who were equally bad.
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You have to have two direct debits out of it too, though right?
 
£10,000 at 3% would only give you £25 per month.

But you don't get any interest on the first £1,000.

You get 1% interest on the £1,000 between £1,000 and £2,000, which is £0.83

You get 2% on the £1,000 between £2,000 and £3,000, which is £1.67.

You get 3% on the remaining £7,000, which is £17.50 per month.

You get taxed at 20% on the £20 gross interest

That brings it down to £16 interest per month.

Take off the £2 fee and you are only getting £14 per month for your £10,000.

And you need to fund it with £500 each and every month and have two DDs.
 
nlr the amount is paying on the full balance if above the level, so Its £25 a month, taxed to £20, and then fee to £18, and then the cash back associated with the direct debits, which should more than cover the fees etc with ease, especially if you have a rates or council tax bill being paid by DD.

Don't forget quidco for setting up the account.
 
Basher said:
You have to have two direct debits out of it too, though right?
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Yep, we're just going to have two/three of our fixed-cost Direct Debits for water, energy and council tax coming out and a Standing Order for the £500-in requirement going in from our main account one day and back the other (minus fixed bill costs). Simple enough.

If I really wanted to I could just set up two Direct Debits to two credit cards which I rarely/never use from it but thought we may as well get some of the cashback benefits on bills too.
 
nlr said:
£10,000 at 3% would only give you £25 per month.

But you don't get any interest on the first £1,000.

You get 1% interest on the £1,000 between £1,000 and £2,000, which is £0.83

You get 2% on the £1,000 between £2,000 and £3,000, which is £1.67.

You get 3% on the remaining £7,000, which is £17.50 per month.

You get taxed at 20% on the £20 gross interest

That brings it down to £16 interest per month.

Take off the £2 fee and you are only getting £14 per month for your £10,000.

And you need to fund it with £500 each and every month and have two DDs.
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The interest is paid on the total balance, it's not tiered/split like income tax:

Interest rates will apply on the first £20,000 of your entire balance once you have at least £1,000 in your account.
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Russinating said:
Just because it's miles above the best so doesn't even really need comparing. Gives cashback on household bills and the like plus up to 4% interest on balances up to £20k which beats every savings account.

I actually bank with Lloyds but have just applied for the 123 to solely use as a savings account.

I also bank with Barclays for business and they're terrible, and have also banked with Natwest, Halifax and HSBC in the past who were equally bad.
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So every other current account is inferior to this 123 account even though it has a fee?
 
nlr said:
£10,000 at 3% would only give you £25 per month.

But you don't get any interest on the first £1,000.

You get 1% interest on the £1,000 between £1,000 and £2,000, which is £0.83

You get 2% on the £1,000 between £2,000 and £3,000, which is £1.67.

You get 3% on the remaining £7,000, which is £17.50 per month.

You get taxed at 20% on the £20 gross interest

That brings it down to £16 interest per month.

Take off the £2 fee and you are only getting £14 per month for your £10,000.

And you need to fund it with £500 each and every month and have two DDs.
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The interest isn't tiered like that, once you get above £3k you get 3% on the full balance.

£10k balance over 12 months would give a gross interest of £296 a year. Go though Topcashback or Quidco and get £36 which more than covers the first years fee. If you have household bills it's a no brainer. Not to mention access to a fee free cashback card which gives 3% on petrol and 1% at supermarkets.
 
coughs said:
So every other current account is inferior to this 123 account even though it has a fee?
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Currently (pun definitely intended) yes. I only know as I've been looking around and only just signed up to the 123. If you have a niche requirement then another account may be better but doubtful.

The only reason we're staying with Lloyds for our main account is because there's a branch a minute away from our home and there isn't a Santander one for mile, and we've only just applied for a joint Club account with them which gives up to 4% on balances of up to £5,000 as well plus their Everyday Offers which are actually pretty decent.
 
Would closing my barclays bank account be a good idea or will it effect my credit score? also what exactly does this mean "Interest rates will apply on the first £20,000 of your entire balance once you have at least £1,000 in your account."

cheers guys
 
coughs said:
Would closing my barclays bank account be a good idea or will it effect my credit score? also what exactly does this mean "Interest rates will apply on the first £20,000 of your entire balance once you have at least £1,000 in your account."

cheers guys
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Nope, no effect whatsoever.

It means you only get get interest on balances between £1K and £20K.
 
Yep, you'll get it a few weeks before your current one expires. And yes the 16 digits are usually different, has been the case with every bank I've been with anyway.
 
coughs said:
Would closing my barclays bank account be a good idea or will it effect my credit score? also what exactly does this mean "Interest rates will apply on the first £20,000 of your entire balance once you have at least £1,000 in your account."

cheers guys
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Some underwriters will ask for 'time with bank' as part of a credit application. Longer is better as it's seen as an indicator of stability (along with time at address). For this reason, I would suggest keeping the account open if it's no difference for you.
 
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