I have started a placement year (full time job for 14 months) as part of my university degree. I am looking to save a regular amount of money each month - something that would gain interest (if possible). What type of account should I look into opening & would it be worth opening a current account with the same bank? Also, how should I work out how much money to save per month? TIA
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"something that would gain interest" - check interest rates. Seriously with the amount of money you save it is just one thing: NOT WORTH IT. You talk of a slice of pizza in a year. We live in a time where banks start offering NEGATIVE interest rates. Not against saving - but forget "earning interest rate" - you will be disappointed.– TomTomCommented Aug 20, 2019 at 9:27
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@TomTom I'm not sure where you live, but in the UK then there are still savings accounts offering 5% interest (see the link in my answer).– JustAnotherCoderCommented Aug 20, 2019 at 9:55
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@TomTom ok - what do you mean by 'You talk of a slice of pizza in a year' ?– lh1276Commented Aug 20, 2019 at 10:00
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500 USD per month saving, 12 months is 6000 USD. At 1% that would be 60 USD. Math. Ok, maybe a cehap evening, but it is not a lot.– TomTomCommented Aug 20, 2019 at 10:04
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1Yes it is not a lot, but you may as well look for the best offer available– lh1276Commented Aug 20, 2019 at 10:05
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1 Answer
You'll probably want to look for a Regular Savings account. Most major banks offer these and they are specifically designed for your scenario of saving a regular amount of money each month.
You'll get a higher interest rate than a standard savings account, but you will be committed to paying in a minimum amount each month and there may also be restrictions on withdrawals. You'll also often find there's a maximum you can pay in each month.
Often then the highest interest rates are only available if you also have a current account at the same bank.
MoneySavingExpert have a writeup with some of the top performing accounts here.
