Where's best to save my money???

sacol4940

Hi Everyone

I'm looking to save approx £500 per month between now and when me and my bf buy a house next year (we're setting the ball rolling in January, but I guess it'll be a few months before its all sorted). The money will hopefully be used towards a deposit.

I already have an ISA and a Websavings account with Halifax, but there's no money in them. (All my accounts/credit card/loan are with the halifax)

Just wondering whats the best place to put my money? A friend suggested premium bonds??

All help appreciated...

Sarah

Reaper

If you don't have a current ISA then could one or both of you open one? Unless you used up this year's entitlement already.

sacol4940

Reaper wrote: »

If you don't have a current ISA then could one or both of you open one? Unless you used up this year's entitlement already.

There's only about £5 in my ISA, i havent put any money in it this financial year

downs523

you mentioned you have a loan with halifax. wouldnt it be better to pay this off first as savings rates are in general lower than the interest rate on loans.

scubaangel

At the risk of stating the obvious, if you have an ISA already set up use it. Any extra money you might need soon put in the savings account.
If you want to look at longer term savings there are accounts offering good rates for 12 months or more but the t&c's usually tie the money in or you lose the good rates. Premium bonds are a gamble, yes you wont lose money but you wont be earning interest on them and unless you get luck you wont make anything either.
Im sure some of the others will be along later with more specific advice.

Lokolo

Premium Bonds are definately not worth anything, especially at the moment, I remember hearing something about NS&I lowering the odds at the moment.

Cash ISA is obviously worthwhile, you say you have one with £5 in it but not used it this tax year, I suspect its been made dormant so you could have to contact the provider to activate it again but I would imagine the rate you are getting is abysmal.

Open up a new Cash ISA and use that. By the time you fill that up you will be in new tax year so you can spend another 7 months filling up that ISA.

sacol4940

downs523 wrote: »

you mentioned you have a loan with halifax. wouldnt it be better to pay this off first as savings rates are in general lower than the interest rate on loans.

ive only got £500 pound left on the loan and im paying off £65 pm, do i not get charged if i pay the loan off early?