Opening a savings account while on ESA

[bigissue]

Hello and Happy new year everyone! After struggling financially with my benefits over the christmas period was saying how great it would be to have some money saved up from over the year to buy a few gifts and extra's at christmas. At the moment I have one account and no credit cards. Looking at my bank I might be able to open an online savings account where I could put £10 here and there away for christmas and emergencies. I am worried about applying for one though in case it triggers anything in regards to my benefits as I am currently on ESA in the support group. Can anyone advise me in this matter?

[honeybee13]

If it's not a large amount, you should be fine if that's your only savings account. This is from the DWP:

 

Your income and savings

 

Your income may affect your income-related or contribution-based ESA. Income can include:

 

• you and your partner’s income
  
• savings over £6,000
  
• pension income
  

You won’t qualify for income-related ESA if you have savings over £16,000.

 

https://www.gov.uk/employment-support-allowance/eligibility

 

 

HB

[bigissue]

Thank you Honeybee, It wouldn't be a large amount perhaps £200 or something over the course of a year to help spread the cost of christmas and if anything goes wrong. I wouldn't go over the savings limit I would have to save every penny I got for over a year to get that!

 

I was more worried that perhaps the dwp monitor if you open an new account or credit checks even for very small amounts that sort of thing?

[antone]

 

I was more worried that perhaps the dwp monitor if you open an new account or credit checks even for very small amounts that sort of thing?

 

Even if they do (and I don't think they will, but I'm not 100% sure) it doesn't matter. You are allowed to have savings up to £6000 without it affecting your ESA(IR).

[Mr.P]

Looking at my bank I might be able to open an online savings account where I could put £10 here and there away for christmas and emergencies.

 

A suggestion for you to ponder: Open an account with a credit union and then set up a standing order to transfer a few pounds each week from your current account to the C.U. account (assuming the bank won't charge for it). Two reasons for suggesting this.

 

1. The savings are little more difficult to access, thus removing the temptation to dip in and spend.
   
2. Building up a regular savings pattern opens up the possibility to get a (relatively) low cost loan should you need it (much better than going to a payday lender).
   

Another savings tip: At the end of the week, put all your loose change in to a jar. When the jar is full, deposit it into your savings account. Last time I emptied my jar, I banked around £200 . Not bad for six months.