www.iva.co.uk

Hi
Am I allowed to have a savings account which I can earn interest on my money while it is needed to pay the bills and also to keep my contingency money in ?

Also I want to start and put a small amount away each month for next christmas,can I put this in a savings account and earn a little extra to spend next Christmas !!!

I think this has been covered previously, any money you save from cutting back on your expenses you can do with what you like.

I was wondering the same as I have a little left over every month from over time. Is there a limit to how much your allowed to save? and what are the chances of getting a savings account while in an IVA?

Can I move money in and out of a basic bank account into a savings account to earn interest on my money before its needed

Yes caraf, again I asked this question last month and was told there isn't a problem with it.

Chris - I would have thought your chances are pretty good. Banks are generally less "bothered" who they give savings accounts to. I don't think there is a limit providing your I&E is correctly stated (i.e. you haven't put £150 for council tax when it is only really £80)

I dont think gaining a seperate account should be too difficult, it may be better to be upfront and honest about your situation though. Any money that has been budgeted for that you have not spent is allowed to be saved or spent on whatever you would like.

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/

Thats ok then, I will pop into the bank next week and see if I can open one. My I&E is all spot on so I dont think they should have a problem with it as I was open from the start regarding overtime, bonus and shift pay that I may have left over each month.

although all this makes good sense and it's right and proper that people are able to keep what they save.What is an acceptable amount of saving??, and if savings are quite significant eg say £4,000 when the annual review comes, won't the IP wonder how this has been managed and increase the monthly payments to suit?
Also,would he/she need to see a savings account as if this was done without declaring it would it be somehow decietful ? Cat 1

Hi. I opened a savings account with the co op just before my iva. I transfer funds into this, which are contingency, car tax, tv licence and 50% of my cost of living increase, just in case they want it. I still had to be credit checked for this but it was done very quickly for me. I think to be honest as its a savings account though, you can only use what you have in so shouldn't be a problem to pen after iva surely. I am saving my statements as my transfers show on my main account. My chairmans report states that I need my p60 and three wage slips for my annual review, it does not state bank statements, but I will still keep tem just in case.

I would encourage all of my clients to open a savings account to pay in their contingency and any other spare money they have available so that it is there when needed. It just makes good sense and encourages careful budgeting.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

are we allowed to have a cash isa as it pays more interest?

tristan,

I do not know if we are allowed but I have an ISA for savings. Also, I do not know if this is right but before I started my IVA in July 2006 I opened a Nationwide account with cheque book, debit card and a £700 overdraft. My IP would be aware of the overdraft because it would have shown up on a copy of a bank statement I sent to him at my first review. Incidently I am not overdrwn as I have worked overtime cand put these extra monies in this account

Hi Goulda yes we are allowed to use ISA accounts for savings but methinks not allowed to have £700 overdrafts (after all that's credit for £700)

There is no problem in holding your savings money in a cash ISA, so long as it is easily accessible for when you need it.