Where should I stash it?

ihaveadream_2

Hi guys (and girls) just a quick hello its my first time posting!

I have a bit of a dilema and could do with some advice.

Basically the condensed version of my story:

I currently live alone with the flat I live in being scheduled to be demolished January 1st 2010.

This is all fine with me and ive decided to use this oppertunity to try and get on the property ladder.

Ive given myself exactly 12 months to save a deposit for a house, this I should be able to do. I have a game plan with lots of money making/saving ideas.

I wont start saving until January 1st as I want to concentrate on completely paying off my credit card and helping my credit rating first.

But my question is this:

I will roughly be saving about £100 a week, I havent set a final end figure just pretty much as much as I can possibly stash away , £100 is the absolute minimum each week but it will change each month/week depending on how much overtime throughout the year I can get.

So where do I put it during the year im saving it?

I dont want to put it anywhere that locks it away for too long as I need to get at it at the end of 2009 and im not too sure a regular savers account is best as the amount I pay in will change each time. I did consider premium bonds in the hope I might win something but is that me just being silly?

Any suggestions on the best way to make the most of the 12 months worth of savings would be greatly appreciated

simpywimpy

premium bonds chance of winning is next to zero - much better getting a good rate savings account.

briona

ihaveadream wrote: »

This is all fine with me and ive decided to use this oppertunity to try and get on the property ladder.

Ive given myself exactly 12 months to save a deposit for a house, this I should be able to do. I have a game plan with lots of money making/saving ideas.

I wont start saving until January 1st as I want to concentrate on completely paying off my credit card and helping my credit rating first.

But my question is this:

I will roughly be saving about £100 a week, I havent set a final end figure just pretty much as much as I can possibly stash away, £100 is the absolute minimum each week but it will change each month/week depending on how much overtime throughout the year I can get.

So where do I put it during the year im saving it?

Even with the housing market being in decline, what could you possibly buy with a deposit of £5,200 (give or take, depending on your overtime)?

With regards to WHERE to save it, obviously an ISA is your best bet as it's tax free. Current allowances are £3,600pa and you get a new allowance each tax year (April). After that I'd assume you should look at the top paying savings accounts (see link).

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

Depending on who you bank with it might be worth looking at regular savings accounts, the downside being you have to pay a set amount in each month!

http://www.moneysavingexpert.com/savings/best-regular-savings-accounts

Briona

ihaveadream_2

briona wrote: »

Even with the housing market being in decline, what could you possibly buy with a deposit of £5,200 (give or take, depending on your overtime)?

With regards to WHERE to save it, obviously an ISA is your best bet as it's tax free. Current allowances are £3,600pa and you get a new allowance each tax year (April). After that I'd assume you should look at the top paying savings accounts (see link).

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

Depending on who you bank with it might be worth looking at regular savings accounts, the downside being you have to pay a set amount in each month!

http://www.moneysavingexpert.com/savings/best-regular-savings-accounts

Briona

its actually closer to £300 a week i will be saving plus the odd painting that i sell that usually goes for a couple of hundred. im just being overly cautious plus i get compensation for having my flat demolished so dont worry i will have enough for a deposit;)

as for regular saver not an option as the amount id be depositing shoots up from week to week but thanks anyway!

DeepSporran

I wouldn't necessarily rule out regular savings. They don't all require the same fixed amount to be deposited every month.

Best example might be Halifax International, paying 10%. It is an offshore bank, so the FSCS compensation up to £35,000 doesn't apply, instead you get the Isle of man protection which is not so good.

However, if you can pay in an amount between £100 and £2000 every month, you do get 10% fixed rate.

Deposits have to be by standing order, but you can vary the amount of your standing order every month quite easily if you use online banking.

If you need to withdraw before the 12 months are up, you have to close the account and the interest rate effectively drops to 5.8% variable (if the total savings are more than £1000.)

There's a very useful list of regular savers here which may provide other possibilities. Most do require the monthly deposit to be fixed, but I'm sure there are other flexible ones like the Halifax International.

Primrose

As you're obviously a tax payer it would seem sensible to take advantage of your annual £3600 Cash Isa allowance if you haven't already done so. Obviously when you need the money for your house deposit you'll have to close the account but you might as well take advantage of the tax free allowance while you can.