best savings account?

utajoker

utajoker

utajoker

Soldato
Joined
13 Jan 2006
Posts
21,124
Location
Wigan
Hi

Looking at the best way to save cash for a mortgage, we have £7k to go straight in and then are looking to pay in monthly.

We bank with RBS and their savings accounts offer 0.01% until you hit £50K.

We are hoping to have enough within 1 year to 18 months so don't want to be locked into anything longer term.

Anyone with a bit more know how have any suggestions please?


Thanks,
 
On that sort of time scale with low risk there really arn't too many options. Your best bet would probably be something like a first direct regular saver account paying 5%, limited to £300 deposit per month and its tied up for a full 12 months else you lose the interest. An account each would allow you to put away £7200. You will only gain £200 over the 12 months if you save the maximum but its better than a kick in the teeth. Where best to put the money you already have is a question i cannot make any suggestion on.
 
How much is the house you're planning to go for? If it's less than £250k you could consider a HTB ISA for the maximum ammount each, and the rest in a savings account. We got 4% with Halifax, but they're only offering 2% now, but ended up with just over £950 each in savings and bonus on top of the investment we put into the accounts, only from a years saving.
 
You should have a Money Market Account (MMA), which normally is for a minimum of 6 months and a penalty if you take it out before then, but the interest is very good.
 
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