Instant access savings accounts vs current accounts?

StevieP

StevieP

StevieP

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In a nutshell is there any difference between an instant access savings account and a current account in terms of functionality?

I have a bog-standard current account that pays literally no interest and so I'm wondering what the downside is to putting my money in a Santander "eSaver Limited Edition" account that pays 2.72% interest per month?

I know I can get better returns with locked in savings accounts but for a penalty free, instant access account, this seems like a no-brainer?
 
I've just opened one myself. Obviously there is no debit card associated with it, so you'll need to transfer out of it to a current account to spend on a debit card.
 
--Mike-- said:
I've just opened one myself. Obviously there is no debit card associated with it, so you'll need to transfer out of it to a current account to spend on a debit card.
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This is broadly the only difference.

The key thing to consider is if you are going to start putting away big money then look for an ISA as you are only allowed to earn £500/year in interest tax free from a current account or non-ISA savings account.
 
What if you got 20-30k and need a quick access savings account ?

I was going to buy a house this year but have put it on hold so got cash in my current account just sitting there
 
KillBoY_UK said:
What if you got 20-30k and need a quick access savings account ?

I was going to buy a house this year but have put it on hold so got cash in my current account just sitting there
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You can put £250k in the Santander account. Even if you pay tax, its better than earning 0.01% in a current account... in my eyes anyway.
 
Yeah the santander 2.75% right now is great but looks to be heavily subscribed I am 2 days in and waiting and normally get replies within 24 hours
Its likely to get pulled before the 1st Nov deadline IMO

Coventry have a flexible ISA at 2.25%, or the santander fixed ISAs are good 3.7% for 1 year or 4.2% for 2 years

Only problem with ISAs in turbulent interest times unless you can get in very high % terms is that they take longer to switch since you need to request a transfer and cant draw down and deposit elsewhere
(well you can if small amounts but not if you already took one out this year or the amounts are large)
 
KillBoY_UK said:
What if you got 20-30k and need a quick access savings account ?

I was going to buy a house this year but have put it on hold so got cash in my current account just sitting there
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Chase Savings can be opened in minutes, 1.5%.

There isn't a cap but obviously not the highest rates either, still, instant access, no cap and no strings attached that i can see.
 
Mercenary Keyboard Warrior said:
Yeah the santander 2.75% right now is great but looks to be heavily subscribed I am 2 days in and waiting and normally get replies within 24 hours
Its likely to get pulled before the 1st Nov deadline IMO
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I applied for the Esaver account today and got accepted within a couple of minutes.
 
Wzd said:
I applied for the Esaver account today and got accepted within a couple of minutes.
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ci_newman said:
I guess you already had a Santander account? Like MKW I applied a few days ago and still waiting for my account to be accepted.
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I'm also with Santander so thats odd
They are never normally instant, but usually within 24 hours.
 
ci_newman said:
I guess you already had a Santander account? Like MKW I applied a few days ago and still waiting for my account to be accepted.
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Nope, I'm new to Santander. Though like KillBoY_UK I am looking to move some "house buying money" into a saving account while the market sorts itself out. So maybe that's why it was a quick turnaround.
 
Wzd said:
Nope, I'm new to Santander. Though like KillBoY_UK I am looking to move some "house buying money" into a saving account while the market sorts itself out. So maybe that's why it was a quick turnaround.
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Really strange then since they always take about 24 hours and right now they are swamped.
No idea how you jumped the queue what number did you get? I was 22390505
leoncuprar said:
Am I reading that right, you can only save 200 month into that esaver? So I can't open one and deposit 10k in there for example?
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Nah thats the regular saver which requires anotehr type of account its a fixed interest one.
You want the limited edition one
 
Mercenary Keyboard Warrior said:
Really strange then since they always take about 24 hours and right now they are swamped.
No idea how you jumped the queue what number did you get? I was 22390505
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I'm not sure. I got one email saying thanks for your application. Then 1 minute later got another email saying thank you for choosing Santander, you'll receive your online banking details in the post within 7 days. Then at the same time got another email saying my esaver account was now open, with my sort code and account number.
 
Wzd said:
I'm not sure. I got one email saying thanks for your application. Then 1 minute later got another email saying thank you for choosing Santander, you'll receive your online banking details in the post within 7 days. Then at the same time got another email saying my esaver account was now open, with my sort code and account number.
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Odd, maybe a different team deal with new accounts or based on what leon just posted they have changed something!
 
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