Prospective first time buyers looking for additional savings account
katiettaylor3
Posts: 1 Newbie
My boyfriend and I are well underway saving to buy our first home. We both already have separate help to buy ISA's and put the maximum in a month. I keep finding myself saving extra money in my current account obviously not gaining any interest. I've searched the web on multiple occasions trying to find the best option for a joint everyday savings account. Both of our current accounts offer very low-interest rates for savings so we're looking to avoid them but I also personally am not looking to switch current accounts. We also don't want anything too fixed as the money will solely be used for buying a house and that could be at any point within the next 1-2 years. What would be the best option for us?
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Comments
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Lifetime ISA?0
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Yes if under 40 definitely consider transfering the HTB ISA to a Skipton Lifetime ISA to enable you to save more with a 25% bonus. Skipton's cut off for initiating this is the end Feb but don't leave it to the last minute. The LISA interest rate is poor but the bigger bonus should more than compensate. You can only use one each towards a property purchase. LISAs need to be open 12 months before they can be used to buy property.
Maybe open Nationwide Flex Direct accounts with regular savers? You don't need to switch just cycle £1k per month through from an external source.0 -
katiettaylor3 wrote: »I keep finding myself saving extra money in my current account obviously not gaining any interest.[...] Both of our current accounts offer very low-interest rates for savings so we're looking to avoid them but I also personally am not looking to switch current accounts.
If you maintain a balance in your current account then it really doesn't make sense not to use one of the interest paying current accounts, e.g. Nationwide FlexDirect, or Tesco, or TSB Clasic Plus (or Santander 123 if you have significant sums).
Why don't you want to switch your account? The switching service is very efficient and easy to use. However, if you really don't want to switch then just open anoher current account that does pay interest and move your money there.
You could also make use of regualr saveings accounts. At worst the money is "locked away" for 12 months.0 -
You don't have to switch to another bank account to take advantage of interest on balances. You can open new accounts that pay interest and still keep your main account operating as normal. I have several accounts for doing just this:
https://www.moneysavingexpert.com/banking/compare-best-bank-accounts#interest
In most cases you need to move a couple of direct debits to come off these accounts. You also need to put a certain a amount of money in them every month -- but just transfer in that amount when your salary is paid, then take it out the next day. It's really easy.
Nationwide, as said above, is a good one as you'll also have access to their regular saver.
Ignore the fact that they're bank accounts and treat them as savngs accounts -- I do! It's just a little more effort to move some money around and set up the direct debits.
LISAs (Lifetime ISAs) are also great for someine in your position. Do these first.0
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