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  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
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    cjv wrote: »
    Get paid in my TSB account, then make a faster payment to TESCO>Nationwide etc. manually each month. Once they are all full, open and pay out the extra funds to the regular savers.
    NO. Open a regular saver each month, starting now with the Nationwide Flexclusive 5%. This helps even out your cash flows when they mature.
    Don't wait to fill the current accounts first. Start with the higher rates and work down.
    After four years, don't reopen any savers that you can't close early.
    Eco Miser
    Saving money for well over half a century
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    cjv wrote: »

    I plan to save as big a deposit as possible over the next 5 years, the dream is to get around £60,000 in that time giving me opportunity for a great mortgage rate, and the ability to be mortgage free sooner.

    In general house prices have risen faster than the interest you are getting on savings, so statistically you'd be better off going for say a 10% deposit, which gets a decent mortgage rate rather than the very best, but once you are in your apt/house then you are riding house price inflation upwards without needing to save to do that.

    Obviously if there's a dip in prices as you save then you can wait a while but setting an arbitrary target without looking at what prices are doing could leave you stranded.
  • cjv
    cjv Posts: 513 Forumite
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    Thanks for that, I had not even considered it. I could potentially just max out my LISA for 4 or 5 years to get the bonus and use that for my deposit.

    Then the rest of my savings can stay invested as an emergency fund or be used to make overpayments or house improvements.

    Something else for me to think about :)
  • cjv
    cjv Posts: 513 Forumite
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    sorry double post
  • cjv
    cjv Posts: 513 Forumite
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    Thank you EcoMiser, I was a bit confused at the process. The Nationwide current account for example only pays 5% for 12 months so I assumed it would be best to wait until I have enough funds to fill that up before opening it and then using the linked regular saver so I get the interest for the full 12 months.

    This thread has been an education

    Now I just need to learn how to use the quote function:D
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
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    cjv wrote: »
    Now I just need to learn how to use the quote function:D
    Click the quote button and type below the text in the box that appears.
    cjv wrote: »
    Thank you EcoMiser, I was a bit confused at the process. The Nationwide current account for example only pays 5% for 12 months so I assumed it would be best to wait until I have enough funds to fill that up before opening it and then using the linked regular saver so I get the interest for the full 12 months.
    You may be right, but you don't need a FlexDirect to open a Flexclusive RS. (and you get another bite at the cherry after a further 12 months)
    Also what are you doing with the money while you are saving enough to take full advantage of the interest?

    I was assuming you had an emergency fund in cash (which is best kept in a high interest current account alongside your savings). Re-reading your OP, you don't which makes investing in S&S even more risky.
    Eco Miser
    Saving money for well over half a century
  • cjv
    cjv Posts: 513 Forumite
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    Eco_Miser wrote: »
    I was assuming you had an emergency fund in cash (which is best kept in a high interest current account alongside your savings). Re-reading your OP, you don't which makes investing in S&S even more risky.

    Thanks again.

    After considering everyone's advice over the past couple of days I have decided now to focus entirely on building up my Cash in high interest current accounts/regular savers alongside making sure I have the full £4000 in my S&S LISA each year. If we ever get a decent Cash LISA rate on the market I will think about transferring into that for a bit more security.

    A Nationwide account and saver is now on the top of my to do list. Once I have built up a large amount of Cash savings over the next year or so, I will then revisit the other options.

    Thanks again to you all for taking the time to help me out.:)
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