Placement student savings account

Question

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

Answer 1

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.