diff --git a/app/build.gradle b/app/build.gradle
index b9405212..4c253d6d 100644
--- a/app/build.gradle
+++ b/app/build.gradle
@@ -8,8 +8,8 @@ android {
         applicationId "com.m2049r.xmrwallet"
         minSdkVersion 21
         targetSdkVersion 25
-        versionCode 47
-        versionName "1.2.7-alpha"
+        versionCode 48
+        versionName "1.2.8-alpha"
         testInstrumentationRunner "android.support.test.runner.AndroidJUnitRunner"
         externalNativeBuild {
             cmake {
diff --git a/app/src/main/java/com/m2049r/xmrwallet/LoginActivity.java b/app/src/main/java/com/m2049r/xmrwallet/LoginActivity.java
index e233ff70..4ddb93b9 100644
--- a/app/src/main/java/com/m2049r/xmrwallet/LoginActivity.java
+++ b/app/src/main/java/com/m2049r/xmrwallet/LoginActivity.java
@@ -799,20 +799,26 @@ public class LoginActivity extends SecureActivity
 
         @Override
         protected Boolean doInBackground(Void... params) {
-            File newWalletFolder = getStorageRoot();
-            if (!newWalletFolder.isDirectory()) {
-                Timber.e("Wallet dir " + newWalletFolder.getAbsolutePath() + "is not a directory");
+            // check if the wallet we want to create already exists
+            File walletFolder = getStorageRoot();
+            if (!walletFolder.isDirectory()) {
+                Timber.e("Wallet dir " + walletFolder.getAbsolutePath() + "is not a directory");
                 return false;
             }
-            File cacheFile = new File(newWalletFolder, walletName);
-            File keysFile = new File(newWalletFolder, walletName + ".keys");
-            File addressFile = new File(newWalletFolder, walletName + ".address.txt");
+            File cacheFile = new File(walletFolder, walletName);
+            File keysFile = new File(walletFolder, walletName + ".keys");
+            File addressFile = new File(walletFolder, walletName + ".address.txt");
 
             if (cacheFile.exists() || keysFile.exists() || addressFile.exists()) {
                 Timber.e("Some wallet files already exist for %s", cacheFile.getAbsolutePath());
                 return false;
             }
 
+            File newWalletFolder = Helper.getNewWalletDir(getApplicationContext());
+            if (!newWalletFolder.isDirectory()) {
+                Timber.e("New Wallet dir " + newWalletFolder.getAbsolutePath() + "is not a directory");
+                return false;
+            }
             newWalletFile = new File(newWalletFolder, walletName);
             boolean success = walletCreator.createWallet(newWalletFile, walletPassword);
             if (success) {
@@ -930,10 +936,17 @@ public class LoginActivity extends SecureActivity
 
     @Override
     public void onAccept(final String name, final String password) {
-        File walletFolder = getStorageRoot();
-        File walletFile = new File(walletFolder, name);
-        walletFile.delete(); // when recovering wallets, the cache seems corrupt
+        File newWalletFile = new File(Helper.getNewWalletDir(getApplicationContext()), name);
+        Timber.d("New Wallet %s", newWalletFile.getAbsolutePath());
+        newWalletFile.delete(); // when recovering wallets, the cache seems corrupt
         // TODO: figure out why this is so? Only for a private testnet?
+
+        // now copy the new wallet to the wallet folder
+        File walletFile = new File(getStorageRoot(), name);
+        Timber.d("Wallet %s", walletFile.getAbsolutePath());
+        copyWallet(newWalletFile, walletFile, false, true);
+        deleteWallet(newWalletFile); // delete it no matter what (can't recover from this anyway)
+
         boolean rc = testWallet(walletFile.getAbsolutePath(), password) == Wallet.Status.Status_Ok;
 
         if (rc) {
diff --git a/app/src/main/java/com/m2049r/xmrwallet/util/Helper.java b/app/src/main/java/com/m2049r/xmrwallet/util/Helper.java
index fbcdff89..ec05c684 100644
--- a/app/src/main/java/com/m2049r/xmrwallet/util/Helper.java
+++ b/app/src/main/java/com/m2049r/xmrwallet/util/Helper.java
@@ -56,6 +56,17 @@ public class Helper {
 
     static public int DISPLAY_DIGITS_INFO = 5;
 
+    static public File getNewWalletDir(Context context) {
+        File newWalletDir = context.getDir("new", Context.MODE_PRIVATE);
+        Timber.d("new wallet directory is %s", newWalletDir.getAbsolutePath());
+        if (!newWalletDir.exists() || !newWalletDir.isDirectory()) {
+            String msg = newWalletDir.getAbsolutePath() + " is not a directory!";
+            Timber.e(msg);
+            throw new IllegalStateException(msg);
+        }
+        return newWalletDir;
+    }
+
     static public File getStorageRoot(Context context) {
         if (!isExternalStorageWritable()) {
             String msg = context.getString(R.string.message_strorage_not_writable);