Need help with savings!

Viennaspender

I'm new to the savings game, I've had the same ISA since I was really young but only just realised its absolute tosh! Instant access that earned me only a tenner from the last tax year. So it goes without saying that I need some advice!

I have just locked away £12,500 into a 4.1% Lloyds TSB fixed eBond. Hopefully earning me £500 approx intrest for the next 3 years. I'd also like to save approx £250 a month coming from my wages.

I'd like to save as much as possible in the next 3 years to pay for the next deposit my new massive house that I've promised my girlfriend! :rotfl:

My question is, with the £250 a month and £500 a year I need to make as much as possible for 3 years time. So do I get a brand new Cash ISA, Fixed term ISA or do I overpay my current mortgage? I do prefer managing my accounts online if it helps.

Thanks for any advice.

souljacker_3

hi, sorry to jump into this thread but I didnt want to start a new one, just have a query.
is your maths on the £500 ebond correct? Im looking to buy one as well as ISA seem poor. But Im not sure on the sales blurb. The rate is 4.1%, minimum deposit is £2,000, fixed for 3 years.
So is the 4.1% on 2k over 3 full years, or per year? as the totals are quite different.
in short
"Hopefully earning me £500 approx intrest for the next 3 years"
is that £500 per year, or £500 over 3 years, total?

Sorry if this has been asked before, but I couldnt find anything concrete, and I fail at working this out myself.

koopa_coffee

It would be approximately £500 per year before tax.

lisyloo

Have you taken into account income tax? 20%?

souljacker_3

thanks for the replies, I think its 3.28% after tax, according to the lloyds site