Temporary Savings Advice Required

sicharlton

Hello all,

I have recently been given a sum of £12,500 which will be used towards buying a house...I'm in need of some savings accounts advice.

My situation is that I currently live with my parents, but have no idea of when I will actually be buying my own home. It could be within the next 6 months...so the money cannot be locked to a specific account for say a minimum of a year....but it also may be longer than 6 months.

I've had a search around but can't really seem to understand exactly what is the best way to save this money.

Also, I will be contributing a minimum of £250 in to this account per month.

Any advice anyone can give would be appreciated.



Thanks in advance,

Simon

leahciM

Assuming you don't already have one, I'd whack my full ISA allowance (£5,200) into the highest paying cash ISA I could find - I'm sure the homepage of MSE gives you the necessary comparisons.

I'd then maybe put the rest in an instant access savings account. I know Santander do a 5% first time buyer's account for people under 35 who have never had a mortgage and I assume this applies to you judging from the info you've given.


Given your short time frame, I'd take this route. Failing that, down the casino and take your chance to put 12k on black

triplea35

I'd personally consider the Lloyds TSB Vantage current account. There are lots of threads on the account on here.

xrjtg

I like the combination of Vantage (a current account that you use like an instant access savings account) and the First Home Saver (a refular saver that accepts a large initial deposit). These can both beat the best instant access ISA rates even allowing for deduction of basic rate tax.

(Note: the annual Cash ISA subscription limit is currently £5100.)

missile

To add my two penny to the good advice above.

Don't get too hung up over rates. An extra 1% over 6 months would equate to £62.50 before tax