Best way to save £1,600 a month

pstones578

I'm starting to save for a house. Could anyone suggest the best place to save my money. I would want to get at it quickly when I do finally have enough to get a house. I currently have a cahoot account but am unsure if this is the best option for me.

dunstonh

Time scales and risk? Although "savings" would suggest risk free, if the timescale is 5 years or more, then risk based funds could come into play. Modern funds are usually accessible without penalty in 7-10 days.

£1600 pm could lead to cash isa and equity ISA being used up before looking at other savings accounts. It really depends on your view of investment risk/reward.

pstones578

I want 'risk free' so am looking at 'normal' savings type vehicles. The time-scale is from now until May 2008. 28 months approx.

Paul_Herring

pstones578 wrote:

I want 'risk free' so am looking at 'normal' savings type vehicles. The time-scale is from now until May 2008. 28 months approx.

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1103213261,45760,

Put £3000 in a cash ISA for 2005/6

With the remainder, start contributing £1250 per month to regular savings.

With what's left after that, stick it in a high interest savings account.

Next (tax) year, put another £3000 in an ISA for 2006/7 (and then possibly £3000 in 2007/8 as well if you still don't need the deposit)