Regular saving of £2000 per month

mr_veedubberman

Hi,

I am in the process of selling my house and moving in with my in-laws whilst my wife and I save up a larger deposit for our new house. We are going to be with them for around a year and will be saving around £2000 per month during this time.

What I'm after is some advice as what to do with this regular savings amount? The money we have made/got back from the sale of our current house will be going into our ISA's and will take up our yearly allowance for 2011-2012 (plus leave us with a cash lump to go somewhere) so ISA's are out.

Is there a decent rate regular savings account that I can open that will give me a decent return on such a large regular amount? Or anything else that anyone can suggest?

Thanks

Tony

Stubod

Hi there..as ever...first port of call for any money must be the Lloyds "vantage" current account. Between you and your wife you can open 3 accounts each and save £42k and get 4% interest.
Just need to set up a "revolving" standing orer to transfer £1000 between accounts each month.

For the rest I would look at the listings on Martin site, or try money supermarket. They have the most comprehensive list of all tyoes of account sorted by highest rate. If it is only "savings" you are after, (ie not investments), you will not do a lot better than about 2.8 - 3.0%. You wil only beat these rates if you go for something longer term and "fixed".

Stu

chookie1

mr_veedubberman wrote: »

Hi,

I am in the process of selling my house and moving in with my in-laws whilst my wife and I save up a larger deposit for our new house. We are going to be with them for around a year and will be saving around £2000 per month during this time.

What I'm after is some advice as what to do with this regular savings amount? The money we have made/got back from the sale of our current house will be going into our ISA's and will take up our yearly allowance for 2011-2012 (plus leave us with a cash lump to go somewhere) so ISA's are out.

Is there a decent rate regular savings account that I can open that will give me a decent return on such a large regular amount? Or anything else that anyone can suggest?

Thanks

Tony

The best you will get for regular saving is about 4%. HSBC Premier and First Direct will give you 8% (on £250 and £300 / mth respectively). After that, N&P have a couple of accounts at 5% if you qualify under the T&C, and you shouldn't have to go lower that 4% to "soak up" the £2k a month - it'll just end up being in about 8 accounts.

Loughton_Monkey

There is no specific 'magic' solution. We all have our mix of 'special' current accounts paying interest/rewards, regular savers, and other 2.9%-ish accounts. You will just have to build up your 'portfolio' and work at moving the money around as necessary.

soulsaver

In-Laws for a year? Recommend an investment? Cyanide pill... and keep it close to hand.