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ISA or easy access saving account for DD17?

(7 Posts)
sinningsaint Thu 12-Feb-15 18:18:43

DD17 has had a job for nearly a year now and has on average between £750-£850 in her current account most of the time (123 mini with Santander). She is a good saver and doesn't spend huge amounts of her wages, just treats herself now and again, but has decided she thinks its time to open some sort of savings account or ISA. We want to stick with Santander so her current options seem to be either the eSaver savings account or the Easy ISA. She is looking to deposit around £500 into the account up on opening it and putting £30-£50 into the account each month and wants easy access to it (online and mobile). I am hopeless with things like this and websites such as money saving expert have just confused me even more! So any advice as to which account she would be better off opening is welcomed smile.

specialsubject Thu 12-Feb-15 18:37:43

why stick with Santander? Financial loyalty is for suckers.

rates are terrible but the Santander ISA is one of the worst.

is she earning enough to pay tax? If not, current accounts pay better interest once she has enough to move enough in and out to get it.

sinningsaint Thu 12-Feb-15 19:00:48

She isn't paying tax no, and we want to stick with Santander as they are our only local branch and even with mobile/online accounts they will help you in branch if there is a problem.

sinningsaint Thu 12-Feb-15 19:02:48

If she were to open another current account where would be the best option?

specialsubject Thu 12-Feb-15 19:06:03

ok. It will cost you but up to you. The Santander ISA pays 1%. She can get 5% at Nationwide or TSB. She will need a lump sum going in and out - if she earns £500 a month (Check that) and pays it into the TSB account she gets that interest.

there's no need to have a local branch to maintain accounts.

sinningsaint Thu 12-Feb-15 19:10:58

She is lucky to earn £150 in a month grin. After talking to local friends who hold accounts with other banks the one thing they have always said is that they would prefer the ease of being with Santander if there are any problems, as they are a very useful branch (I have lived all over and never had such great customer service).

specialsubject Thu 12-Feb-15 19:39:44

ah - my mistake, thought she was earning the sum you mentioned at the top. The interest can be obtained by moving the same money back and forth from two accounts.

it isn't much on these sums of course so may not be worth the effort.

I almost never speak to any bank where I have an account. It's all done online.

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