Saving £800+ a month - questions..

geordie_ben

I'm going to be starting my mammoth task next year of trying to save £10k towards a house deposit **bites finger nails**

Depending on my job I'm going to be able to save between £700 and £900 a month

I need to figure out which options would give me the greatest return

I dont think stocks etc would be an option for me.

I was thinking of using my ISA allowance, teamed with First Direct 8% and then maybe something else?

I have used my 2010-11 ISA allowance already.

This money will be locked away and not touched (97% sure of that)

I've had a read through the Savings pages, but getting my head round the mix and match options I could use is what I'm struggling on

Any help wouild be great

middlepuss

Assuming you're going to be buying a house in the next few years, a stock market investment is too risky - the market might tank just as you want to sell.

So £5,100 into a high interest cash ISA and the rest into high interest non-ISA cash accounts?

geordie_ben

middlepuss wrote: »

Assuming you're going to be buying a house in the next few years, a stock market investment is too risky - the market might tank just as you want to sell.

So £5,100 into a high interest cash ISA and the rest into high interest non-ISA cash accounts?

At the moment I'm thinking:

£700
ISA - £400 a month (A&L 3%)
Savings - £300 a month (First Direct 8%)

Which would give me a return of £8601.27 (incl. £201.27 interest)

or

£900
ISA - £400 a month (A&L 3%)
Savings - £300 a month (First Direct 8%)
Savings 2 - £200 a month (4%)

Which would give me a return of £11042.67 (incl. £242.67 interest)

Anyone suggest anything better?

pressuredrop_2

A few regular savers would do it. FD at 8% is a start. A couple more required.

Cash ISA? What's the point?

ryantcb

first direct pay 8% interest on savings? I got to look into that sounds fantastic I get 1.0% from my privilege account at co-op

geordie_ben

pressuredrop wrote: »

A few regular savers would do it. FD at 8% is a start. A couple more required.

Cash ISA? What's the point?

Any suggestions to which ones and how much to pay into each?

I'd max the FD 8% (£300 a month) as obviously this is the best buy and beats any ISA... but what next?

pressuredrop_2

https://forums.moneysavingexpert.com/discussion/608697

psychic_teabag

If you are under 35 and have never owned a house, Santander do a regular saver paying 5%, up to £300 per month I think. There were a couple of other reg savers paying 5% but they've been withdrawn recently. A reg saver at 4% is probably still better than you can get from an ISA at the moment (assuming basic rate tax), but after that ISA at 3% sounds good. (I wasn't aware cash ISA's had made it up to 3%)

geordie_ben

So, the First Direct account is a no go. You have to open their 1st Account which costs £10 a month which would cancel out any interest I was going to make, also since you have to switch your salary to this bank, it means when I come to apply for my mortgage I will have only had my main bank account for a lil over 12 months... never a good thing surely? Any other options - pro's and con's for this account?

From what I've read, and hoping things stay the same for when I come to open the accounts I'm planning on opening:

Saving £700 a month:

Santander @ 5% - £300 (£3677.53)
Halifax x 2 @ 6% - £100 x 2 (£1238.65 x 2)
Santander @ 4% - £200 (£2441.40)

Total - £8596.23

Saving £900 a month

Santander @ 5% - £300 (£3677.53)
Halifax x 2 @ 6% - £100 x 2 (£1238.65 x 2)
Santander @ 4% - £200 (£2441.40)
Teachers BS @ 4% - £200 (£2441.40)

Total - £11037.63 :j:T:j

Knowing my luck by the time I come to apply for all the accounts all the rates will have changed... let's just hope they go up

apt

You don't have to pay £10 per month with First Direct. Just open up a saving account with £1 in it to avoid the charges if you are not funding with £1500 per month. Switching to FD would not hurt your mortgage prospects. It might even help as FD sometimes has some of the best mortgage products. The Halifax 6% regular savers are children's accounts. The money is supposed to go to the named child, although you could steal it off him/her.

geordie_ben

apt wrote: »

You don't have to pay £10 per month with First Direct. Just open up a saving account with £1 in it to avoid the charges if you are not funding with £1500 per month. Switching to FD would not hurt your mortgage prospects. It might even help as FD sometimes has some of the best mortgage products.

From everything I've read you do have to pay the £10 a month unless I can pay in £1500 a month, which I cant do... can you point me to where it says otherwise?

And thanks for the other part