Naive Question - 5-10% ?

I've saved a small but relatively decent amount for a mortgage deposit, but am also toying with the idea of putting off buying for a further 12 months.

Are there any safe saving opportunities that return between 5-10% which I can lock up most of my savings for 12 months?
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  • SeduLOUs
    SeduLOUs Posts: 2,171 Forumite
    You won't find 10% in short term savings, but there are quite a few 5% regular savers and some 3-5% current accounts that you can fill up if you are willing to make a few monthly transfers between them.

    http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#currentaccount

    http://www.moneysavingexpert.com/savings/best-regular-savings-accounts
  • JohnRo
    JohnRo Posts: 2,887
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    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
  • Zanderman
    Zanderman Posts: 4,643
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    What SeduLOUs said.

    But... most are a lot less than 5%. Only, I thnk, Nationwide's FlexDirect will give a solid 5% on a lump sum and that's only on 2.5k. The other current accounts pay less than 5%, a few at 3% and a few at 2%. All only pay this on the first £1 to 3k or so. So you need to work at it to get the best return. Most have conditions to meet too.

    Many Reg Savers pay 5% (most of these have conditions too!) but that's the annual rate, and as they only allow small deposits per month you'll only get that 5% pro-rata on most of the deposits, so it won't be a full year of 5% on your total investment.

    10% is not on the agenda!
  • eskbanker
    eskbanker Posts: 30,401
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    As you say on your other thread, you're a first-time buyer with a HTB ISA, but if you're not buying for more than a year you can get more money into a Lifetime ISA in order to earn 25% bonus on a larger amount (£4K/year). You can't get 25% on both a HTB and a LISA but can transfer the HTB into a LISA and pre-17/18 HTB money doesn't count towards the £4K annual LISA allowance, more details in that linked article.

    If your OH is also a first-time buyer you could double up between you....
  • Saga
    Saga Posts: 301
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    OK. Thanks for the tips.
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  • Saga
    Saga Posts: 301
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    I thought LISAs were only for 18-40yos? I'm mid-40s.
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  • tim_n
    tim_n Posts: 1,607
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    I wouldn't overlook what eskbanker says - it's a 25% bonus for no risk (each!) You won't find a better deal. If you've already filled that up, SeduLOUs's comment will help you maximise every last penny you can.
    Tim
  • eskbanker
    eskbanker Posts: 30,401
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    Saga wrote: »
    I thought LISAs were only for 18-40yos? I'm mid-40s.
    Ah, yes, you're right, sorry, I didn't pick up on your age!
  • be-careful of opening too many accounts at once (i.e high interest current accounts) as these can involve credit checks and could lead to a lower credit score which will impact your mortgage costs and choices
    I need a better signature
  • darkidoe
    darkidoe Posts: 1,125
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    Saga wrote: »
    I've saved a small but relatively decent amount for a mortgage deposit, but am also toying with the idea of putting off buying for a further 12 months.

    Are there any safe saving opportunities that return between 5-10% which I can lock up most of my savings for 12 months?

    Naive question indeed.

    Let us know if you find an answer.

    Save 12K in 2020 # 38 £0/£20,000
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