Highest paying savings accounts + Virgin Money, Nationwide & Santander news & more (July 22 update)

Be Clever With Your Cash
10 Jul 202212:59

TLDRThe video script discusses the importance of savings in the context of the cost of living crisis, highlighting that many people have limited savings. It emphasizes using savings wisely, suggesting to pay off debts and reduce spending. The script reviews various savings accounts, including the Nationwide Flex Direct current account with a 5% interest rate and Virgin Money's M Plus current account. It also mentions other options like the Claro app, Chase Bank, and Synergi Bank, advising on spreading savings across different accounts for better accessibility and rates.

Takeaways

  • 🚨 The cost of living crisis is rapidly depleting savings, with 80% of Lloyd's Bank's customers having less than £500 in their accounts.
  • 💰 Many are searching for better savings rates outside traditional banks like Lloyd's due to low interest offerings.
  • 📈 It's essential to use savings instead of borrowing for expenses to avoid higher charges from loans.
  • 🖥 Nationwide has reintroduced a 5% interest rate for its FlexDirect account, though it comes with several restrictions.
  • 💵 Nationwide's Start to Save account now offers 2.5% interest and includes prize draws, with limitations on monthly deposits.
  • 💳 The Nationwide Triple Access account's interest rate increase to 1.4% offers a somewhat competitive option with withdrawal restrictions.
  • 💲 Virgin Money updated its M Plus account rules, possibly allowing more than one account per person, contrary to previous limitations.
  • 🖥 Santander's Regular Saver now available to all current account holders, not just 1|2|3 customers, offering a 2.5% interest rate.
  • 💸 Marcus by Goldman Sachs increased its savings rate to 1.3% for new and existing customers, but activation is required.
  • 📦 RCI Bank offered a £25 bonus for new or existing customers who open a new account and deposit £10,000, aiming to attract those in Chase's waiting room.
  • 📉 Top savings options for July 2022 include Nationwide's FlexDirect account, Virgin Money's M Plus account, and Claro app, with various interest rates and conditions.

Q & A

  • What is the main concern discussed in the July 2022 update regarding savings accounts?

    -The main concern discussed is the rapid disappearance of savings due to the cost of living crisis, with a significant number of customers having less than £500 in their accounts, which is not sufficient for an emergency buffer.

  • What did the head of Lloyd's Bank reveal about their customers' savings?

    -The head of Lloyd's Bank revealed that 80% of their current account and savings account customers have less than £500 in their accounts.

  • What is the importance of having an emergency buffer in savings?

    -An emergency buffer is crucial for unexpected expenses or financial hardships, ensuring financial stability and reducing the need to borrow money at higher interest rates.

  • What did the report from Hargreaves Lansdown suggest about people's savings during the pandemic?

    -The report suggested that the money people saved during the pandemic, due to not going on holiday or commuting, would likely be consumed by the increasing cost of living.

  • What advice is given for those facing financial difficulties and considering using their savings?

    -The advice given is to use savings first, if possible, as the interest earned on savings is typically much lower than the interest charged on borrowed money. It's also recommended to reduce spending and find the best deals for necessary purchases.

  • What is the interest rate offered by the Nationwide Flex Direct current account?

    -The Nationwide Flex Direct current account offers a 5% interest rate, but it's only for the first 12 months, on the first £1,500 saved, and for first-time account openers.

  • What are the limitations of the Nationwide Start to Save account?

    -The limitations of the Nationwide Start to Save account include a maximum savings of £50 per month and participation in prize draws every six months, requiring consistent savings for six months prior to the draw.

  • What is the interest rate increase for the Virgin Money M Plus current account?

    -The interest rate for the Virgin Money M Plus current account was increased to 2.02% on the first £1,000 saved in the account.

  • What is the ethical aspect mentioned regarding the banks and savings accounts?

    -The ethical aspect mentioned is that while some banks offer competitive interest rates, they may not necessarily be the most ethical choices. It's suggested that smaller, more sustainable, or Sharia-compliant banks could be considered for those seeking ethical savings options.

  • What is the recommended strategy for managing savings in multiple accounts?

    -The recommended strategy is to spread savings around two or three different accounts to maximize interest earnings and maintain accessibility, while also providing a safety net in case one account encounters issues.

  • Where can viewers find updated best buy tables for savings accounts?

    -Viewers can find updated best buy tables for savings accounts on the website becleverwithyourcash.com/savings.

Outlines

00:00

💰 Savings Update and Living Costs Crisis

The paragraph discusses the challenges faced by individuals due to the rising cost of living and its impact on savings. It highlights a statement from the head of Lloyd's Bank that 80% of their customers have less than £500 in savings, emphasizing the importance of an emergency fund. The speaker advises using savings before resorting to borrowing and suggests looking for the best rates to minimize costs. It also mentions Nationwide's Flex Direct current account, which offers a 5% interest rate for new customers, and the Start to Save account with a 2.5% rate. The speaker encourages using savings to pay off existing debts to save money in the long term.

05:01

🏦 Bank Accounts and Interest Rates Update

This paragraph continues the discussion on savings by providing updates on various bank accounts and their interest rates. It mentions the Virgin Money M Plus current account, which offers a competitive rate of 2.02% on the first £1,000 saved. The speaker also talks about the Claro app, which offers 2% interest on £3,000 savings for iOS users. Additionally, it covers other accounts like the Linked M Plus saver, Chase Bank, Synergy Bank, and Sharia-compliant accounts. The speaker advises spreading money across different accounts for better access and security.

10:02

📈 Top Savings Accounts for July 2022

The final paragraph focuses on the best savings options available as of July 2022. It ranks the top places to save money, starting with the Nationwide Flex Direct account for those who haven't had one before. The Virgin Money M Plus current account and the Claro app are also recommended for their competitive rates. The speaker suggests spreading cash across two or three different accounts for security and easy access. It also mentions full easy access accounts with higher limits, such as the Linked M Plus saver, Chase Bank, and Synergy Bank. The paragraph concludes with a reminder to check the speaker's website for updated best buy tables and more savings tips.

Mindmap

Keywords

💡Savings Accounts

Savings accounts are financial products offered by banks and other financial institutions where individuals can deposit money to save for the future. They typically offer interest on the deposited funds, which serves as a form of passive income. In the video, the speaker discusses various savings accounts, emphasizing the importance of selecting the best account to maximize earnings while maintaining accessibility to funds in case of emergencies.

💡Cost of Living Crisis

The cost of living crisis refers to a situation where the general level of prices for goods and services is rising, making it more expensive for individuals to maintain their standard of living. This can lead to financial stress and difficulty in saving money. In the video, the speaker expresses concern about how the rising cost of living is affecting people's ability to save, with many having less than £500 in their accounts, which is not sufficient for an emergency fund.

💡Emergency Buffer

An emergency buffer refers to a sum of money set aside to cover unexpected expenses or financial emergencies, such as medical bills, car repairs, or loss of income. It is a crucial part of financial planning, providing a safety net to avoid going into debt when unforeseen events occur. The video highlights the importance of having an adequate emergency buffer and the challenges people face in maintaining one due to the cost of living crisis.

💡Interest Rates

Interest rates are the percentage of the loan or deposit amount that a financial institution charges or pays for borrowing or saving money, respectively. In the context of the video, the speaker discusses various interest rates offered by different savings accounts, emphasizing the importance of choosing an account with a competitive rate to maximize savings growth.

💡Debt

Debt refers to money borrowed by one party from another, with the promise to repay it with interest. In the video, the speaker advises using savings to pay off existing debts, as this can save money in the long term by avoiding higher interest charges associated with borrowing.

💡Budgeting

Budgeting is the process of planning and managing one's income and expenses to achieve financial goals. It involves creating a budget to track and allocate funds for various expenses, ensuring that spending does not exceed income. The speaker in the video encourages viewers to reduce spending and cut costs as a strategy to save more money and improve their financial situation.

💡Nationwide Flex Direct

Nationwide Flex Direct is a current account offered by the Nationwide building society, which provides a variety of benefits including interest on savings. In the video, the speaker mentions that this account has reintroduced a 5% interest rate for a limited time and under specific conditions, making it an attractive option for those looking to save money.

💡Virgin Money M Plus Current Account

The Virgin Money M Plus Current Account is a banking product that offers a competitive interest rate on savings. In the video, the speaker highlights this account for its 2.02% interest rate on the first £1,000 saved, emphasizing its value for those seeking to earn more on their savings.

💡Claro

Claro is a digital banking app mentioned in the video that provides a competitive interest rate on savings. The speaker notes that it offers 2% interest on savings up to £3,000, making it a suitable option for those with modest savings looking for an easy-access, high-interest savings solution.

💡Synergia Bank

Synergia Bank is a financial institution that offers savings accounts with competitive interest rates. In the video, the speaker mentions an account with Synergia Bank that provides a 1.46% interest rate, which is an option for those with larger savings looking for full easy access to their funds.

💡Ethical Banking

Ethical banking refers to the practice of banking with institutions that prioritize social and environmental responsibility, avoiding investment in sectors that may be harmful or unethical, such as fossil fuels or arms manufacturing. The speaker briefly touches on the topic of ethical banking, suggesting that some banks, like Tandem, claim to be sustainable, which might appeal to individuals seeking ethical financial options.

Highlights

The cost of living crisis is causing rapid depletion of savings for many.

80% of Lloyd's Bank customers have less than £500 in their savings accounts.

The importance of having an emergency buffer is underscored by the current economic challenges.

Many customers may have their savings in other institutions seeking higher interest rates.

The report from Hargreaves Lansdown suggests that the pandemic savings might be consumed by the rising cost of living.

Using savings is recommended over borrowing, as interest on loans is typically higher than earned on savings.

It is advised to reduce spending and find the best deals to conserve savings.

Nationwide Flex Direct current account offers a 5% interest rate, albeit with several conditions.

The Start to Save account from Nationwide has increased its interest rate to 2.5%.

Nationwide's Triple Access account offers 1.4% interest with limited withdrawals.

Virgin Money's M Plus current account offers 2.02% interest on the first £1,000 saved.

Some customers have found a way to open multiple M Plus current accounts with Virgin Money.

Santander's regular saver account now accepts any Santander current account holder.

Marcus by Goldman Sachs has increased its interest rate to 1.3% for new and existing customers.

RCI bank offered a £25 bonus for opening a new account through a specific link.

Chase Bank's waiting room issue led to a promotional offer for new account openings.

Top savings accounts for July 2022 include Nationwide Flex Direct, Virgin Money M Plus, and Claro app.

For ethical considerations, some banks like Chase may not be the best choice despite their rates.

Synergia Bank and Tandem offer competitive rates with ethical considerations in mind.

Al Rayan offers a Sharia compliant account with a 1.45% interest rate.

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