Confused about which Saving account ?????

staceyhollins

Hi

i am planning on saving for just over 12 months for my civil partnership in September next year.
i have 2 options:

• when i get compensation i can deposit approx £1000 and go on to save around £300 a month between me and my partner. we have already been saving around 100 a month and putting it in a 'pot'.

or

• save around £300 every month until the wedding?

we just dont know which saving account is best to save the most interest?

any help would be mmuch appreciated.

Mickygg

Your best bet would be to use the AA Internet extra account, as recommended by a lot of people on here. This is easy/instant access with no withdrawal penatlies and pay currently 2.8%

Or there is ING that currently gives 2.75%. I have had both accounts in the past and both were easy to set up and use.

ultrawomble

Personally, I would choose the account that gave you the most flexibility - interest rates are low at the moment and since you're only looking 12 months hence, your maximum return is likely to be around £70 after the standard rate of tax.

The following assumes figures (£1000 + £300/m) from your first scenario: Saving the maximum of £250/month in a Barclays Monthly Savings (current AER = 3.25%) would give ~£42 after tax (but you do have the bonus of instant access and the rate only drops to 3.03% for any month with a withdrawl), and putting an initial £1000 in the AA account and adding another £50/m (at the current 2.8%) will give a further £30 interest after 12 months.

atsoc15

Look at the santandr first home owner saver account if you are elegible. Pays 5% I believe