saving for mortgage deposit

clare-iom

Hi,

I'm hoping to get 20k from the sale of my apt. I unfortunately have to come off the property ladder (long story) so i need to put the money into a safe savings pot. I'd like to add to it over time in the hope of saving to gather a bigger deposit for a future purchase. I'll only be able to add approx £100 a month so i dont have a lot to add to it.

Any suggestions? i was thinking premium bonds?

Thanks

Clare

bobcurtis

clare-iom wrote: »

Hi,

I'm hoping to get 20k from the sale of my apt. I unfortunately have to come off the property ladder (long story) so i need to put the money into a safe savings pot. I'd like to add to it over time in the hope of saving to gather a bigger deposit for a future purchase. I'll only be able to add approx £100 a month so i dont have a lot to add to it.

Any suggestions? i was thinking premium bonds?

Thanks

Clare

It depends how quick you might need access to the money. If you are thinking of buying another property soon you can not really tie it up in a notice account. This means you are realistically looking at very low interest rates. Premium bonds are low at the moment, so I would go for the best instant access account. You should be safe as all British institutions are guaranteed up to £50,000. It all depends on how long you are going to wait to buy again.

clare-iom

Hi Bob

Thanks for the advice. I dont think i'll be needing the cash quickly as i cant afford a larger property with whats on the market right now. I'm just hoping over time I can save enough to "eventually" for a 3 bed house. So i dont need quick access however i need to be sure there will be no risk.

Cheers

clare-iom

Hi, house sale completed on Friday & I'm hoping to put £20k away. I wont need quick access & just after the best and safest saving options. Any suggestions? thanks

D1zzy

If you can survive the credit checks how about 3 LTSB Vantage current accounts - if you maintain a balance of between £5K and £7K in each they pay 4% and you can add to - though don't go beyond 7K cos the interest on the bit above 7K is rubbish.

Or maybe 2 x LTSB Vantage with 5K in each and the other 10K in a 1 year NSI growth bond @ 3.95%

kingmonkey

Put £3600 in a cash ISA now and then put £5100 in a cash ISA in April. Put the rest in an ordinary savings account.

Read the savings articles on this site for general savings advice and recommendations and moneysupermarket.com

D1zzy

kingmonkey wrote: »

Put £3600 in a cash ISA now and then put £5100 in a cash ISA in April. Put the rest in an ordinary savings account.

Read the savings articles on this site for general savings advice and recommendations and moneysupermarket.com

Yep -ISA good idea- I always forget about them

Primrose

If you're a taxpayer I'd certainly advise maxing out on your cash ISA's. If you're going to be out of the market for a while this will save you some tax. Hold back enough in the best Easy Access account until next April when you can tuck away another £5100 in next year's allowance, and at that point see if you can find a good interest paying one year bond. If you're still out of the property market by the following April, when that matures take out another £5100 cash ISA. By then you will have protected nearly £14,000 from tax.

kinglewis

If you're a taxpayer...

£3600 into a First direct cash ISA 3.00%
£5100 in an Alliance & Leicester e saver 3.00% (Easy access ready for April 2010 to fill the rest of your ISA.. although other ones are available upto 3.6% in this site. Ulster / Citibank etc)
Put the rest into NS&I 3.95% 1 year Bond.