Where to put our savings?!

Ems_-_2

Hi all,

First time poster here!

OK myself and my partner rent together and want to start saving for a deposit, we are 26 and 28 and been self employed and working abroad for years (dancing and singing), we now have hit the entertainment business on the head (no jobs!) and we now work full time in the hotel industry. Finally decided to buy and we are looking to put savings somewhere but no too sure where!

We have current accounts, me - hsbc, partner - barclays, we have a household account set up for household bills and direct debits - santander.

We are looking to save £700 each month, any advice what is the best account to put this in??? Heard you should try and save with a bank you want a mortgage with?, but not too sure about this???? I'm so confused and don't know where to start!!!!!!

Thanks for advice!

Loughton_Monkey

Santander's Home Buyer account will be good for 5% (up to £300 a month). Barclays regular saver is 3.25% for up to £250 a month. [First Direct do one at 5% up to £300].

Other options include using either/both your Cash ISA allowances (equivalent to £425 per month each). These will pay only 2.8%, but since they are tax free, they are equivalent to 3.5% gross.

Not sure about whether you could both do a Santander 5% deal (others might advise - anybody?) to get advantage of £600. [Existing Joint Account and same address might be a small giveaway - even for Santander!]

As to whether you should save with same bank as potential mortgage, then I think this is far less appropriate than it was many years ago. It's far more 'cut-throat' out there these days, with very little loyalty - either way. It's certainly not a bad idea to find a bank with excellent savings rates - who also seem to have competitive mortgages. But look after yourselves first. Save with the best rates you can find. When you want a mortgage, shop around.

Loughton_Monkey

Sorry. Forgot to mention. I think HSBC do a 4% Regular saver up to £250 a month.