Which saving account is best?

taramasalata1

I am currently saving for a deposit for a house and have been doing so for quite some time. At the moment my savings are going into a ISA account where the interest is paid monthly. I will have my deposit within 6 months or so. If I switch to a higher interest account that pays interest yearly, will i loose out? If so which account is best for me?

Consumerist

taramasalata1 wrote: »

If I switch to a higher interest account that pays interest yearly, will i loose out? If so which account is best for me?

No. If you close the account before inerest has been credited then interest will be paid when you close the account.

If, however, you merely withdraw the account balance but keep the account open then interest will be paid at the yearly interest-payment date.

For a 6-month period, an instant-access account or ISA will probably suit your needs. Look here and here for some suggestions on what's currently available. Get the best rate you can but look out for any account restrictions you might not be happy with. Go to the bank's website, read their Terms & Conditions and make sure you understand them. If there is anything you don't understand then post a question on the forum.

unsung

Last time I looked

Barnsley bs IF iSaver YBS Internet Saver
Gave decent no strings returns

xrjtg

If you've never bought before then the Santander First Home Saver could be worth a look:

hxxp://forums.moneysavingexpert.com/showpost.php?p=6932871&postcount=8

[link mangled to get round new poster filter]

I'm not looking to buy a house, but I'm still planning to open the account as a regular saver. Just make sure that you put earplugs in before the meeting with one of their 'advisors' to make sure that you don't actually end up taking a mortgage out with them.