Best account for deposit saving
Best account for deposit saving
Author
Discussion

okgo

Original Poster:

40,669 posts

214 months

Monday 15th August 2011
quotequote all
I'd like to know the best place to save for a house deposit, I can commit to a monthly amount, and won't need access to the cash. Only thing is (which I guess
Voids isa's) I'll be starting from £0.

Any advice? smile

cuprabob

16,952 posts

230 months

Monday 15th August 2011
quotequote all
Some ISAs allow you to start with a £1, so I wouldn't rule them out.


driverrob

4,815 posts

219 months

Monday 15th August 2011
quotequote all
You could do worse than get Martin's Money tips weekly emails: http://www.moneysavingexpert.com/latesttip/#tip_em... before deciding.

cuprabob

16,952 posts

230 months

Monday 15th August 2011
quotequote all
www.moneysupermarket.com is quite good too

okgo

Original Poster:

40,669 posts

214 months

Monday 15th August 2011
quotequote all
I've been on supermarket, but was wondering what others thought.

I'm aware I'm not going to get a lot of
Interest, but would be nice to get the
best account for the purpose.

amir_j

3,579 posts

217 months

Monday 15th August 2011
quotequote all
okgo said:
I've been on supermarket, but was wondering what others thought.

I'm aware I'm not going to get a lot of
Interest, but would be nice to get the
best account for the purpose.
How long do you expect to be saving?

Mermaid

21,492 posts

187 months

Monday 15th August 2011
quotequote all
Quite a few banks have monthly schemes (but limited to £250 per month) that pay 4%. That's good.

okgo

Original Poster:

40,669 posts

214 months

Monday 15th August 2011
quotequote all
Amir - 2-3 years

Thanks, ive seen first direct pay 8% for 12 months with a maximum of £300 per month, but even that only gives you £125 of interest on that £3600 over the year then it reverts to a crap rate!

Besides i want to put more than £300 away, and I want to put my quarterly bonus in there which are usually a
a few k, so I guess the £300 ones are
not ideal ...

Edited by okgo on Monday 15th August 22:30

Mermaid

21,492 posts

187 months

Monday 15th August 2011
quotequote all
I'm not sure you have much choice unless you are willing to take a currency exposure, or some risk but can't see that since it is for a home deposit.

amir_j

3,579 posts

217 months

Monday 15th August 2011
quotequote all
Stick to mainly cash only or NS&I Inflation linked bonds as 2-3 years is not worth any high risk.

Also some of the main lenders do house deposit saving accounts where you 'may' get to benefit later.

No gurantee but maybe worth investigating & hedging your bets by putting the minimum in
e.g. http://www.nationwide.co.uk/savings/limited_access...

Easty-5

1,423 posts

206 months

Tuesday 16th August 2011
quotequote all
I opened a savings account up a couple of weeks ago for the exact same purpose as you. After lots of research and a meeting at the bank the only account suitable to us (me and missus) was an easy access saver with a whopping interest rate of 1.7% or something like that.

The problem we have is we will be adding anywhere from 1k-2.5k every month. So bond trackers etc are no use, much like ISA's. To be honest you'd be better sticking the money under your mattress.

okgo

Original Poster:

40,669 posts

214 months

Sunday 21st August 2011
quotequote all
Thinking about opening this?

http://www.coventrybuildingsociety.co.uk/savings-a...

Any thoughts?

NoVetec

9,967 posts

189 months

Friday 26th August 2011
quotequote all
okgo said:
Thinking about opening this?

http://www.coventrybuildingsociety.co.uk/savings-a...

Any thoughts?
Looks okay, as long as the rate stays the same after the first year.

Mermaid

21,492 posts

187 months

Friday 26th August 2011
quotequote all
NoVetec said:
Looks okay, as long as the rate stays the same after the first year.
Enjoy a rate of 3.15% AER*/Gross p.a. (variable) including a first year bonus of 1.15% AER*

NoVetec

9,967 posts

189 months

Friday 26th August 2011
quotequote all
Mermaid said:
Enjoy a rate of 3.15% AER*/Gross p.a. (variable) including a first year bonus of 1.15% AER*
I read that as being on top of 3.15%.

boxedin

okgo

Original Poster:

40,669 posts

214 months

Friday 26th August 2011
quotequote all
So st then?

Mermaid

21,492 posts

187 months

Friday 26th August 2011
quotequote all
okgo said:
So st then?
No, it is competitive right now, change in a years time or before if rates go up.

NoVetec

9,967 posts

189 months

Friday 26th August 2011
quotequote all
Mermaid said:
okgo said:
So st then?
No, it is competitive right now, change in a years time or before if rates go up.
They take 0.5% from the "average balance" yearly, for the Poppy Appeal.

If it's better for you okgo, maybe start off with the FD one, and then switch in a year's time or before?

Mermaid

21,492 posts

187 months

Friday 26th August 2011
quotequote all
NoVetec said:
They take 0.5% from the "average balance" yearly, for the Poppy Appeal.
No...

"We make a donation to the Poppy Appeal of 0.05% of the average balances held in the account for each 12 month period, commencing 1 June."


i.e. £50 if you have an average balance of £100,000. However be aware that only £85k is guaranteed, and you may want your monthly interest to be paid to another account so that the balance does not exceed £85k.



cuprabob

16,952 posts

230 months

Friday 26th August 2011
quotequote all
NoVetec said:
I read that as being on top of 3.15%.

boxedin
No, the bonus is included in the 3.15% figure and not in top of