Best account to save house deposit over 1 year?

dorkykatie

Hello,
I am starting to save for a house deposit and planning on putting around £1000 away each month.
I am wondering what is the best way to save this? I have current accounts with HSBC and Natwest but their ISA's don't seem to have a good interest rate?

Any ideas or advice anyone?
Thanks!

HappyMJ

Regular savers still seem to be good. 6% if you open a Santander account at the same time. First Direct pays 8% if you can get an account with them.

Yorkie1

If you're under 35, Santander also have a house buyer's account which has a relatively high interest rate - you can put I think max £350 per month in; there's some condition about seeing their mortgage adviser when you want to withdraw the money (no obligation) if I recall right.

dorkykatie

Ah that's no good as it will be much more than £350 a month, and the 8% for First Direct also has a £350 limit.

Eco_Miser

You don't have to put all your savings in one account. Indeed if you want to maximise your interest you have to spread it around.

opinions4u

Eco_Miser wrote: »

You don't have to put all your savings in one account. Indeed if you want to maximise your interest you have to spread it around.

Build on this suggestion.

A First Direct 8% account each for £300 x 2 - no access for a year.

Then perhaps the rest in to something that gives you easy access (3 days away) such as the 3.35% AA ISA. www.theaa.com/savings.

Take a look in to credit cards that charge 0% interest for an extended period (pay off in full before the 0% expires) or pay cashback/rewards on purrchases too (pay off in full each month when statement period begins). Sort these out a month or so before the spending commences!

agrinnall

opinions4u wrote: »

Build on this suggestion.

A First Direct 8% account each for £300 x 2 - no access for a year.

Then perhaps the rest in to something that gives you easy access (3 days away) such as the 3.35% AA ISA. www.theaa.com/savings.

Take a look in to credit cards that charge 0% interest for an extended period (pay off in full before the 0% expires) or pay cashback/rewards on purrchases too (pay off in full each month when statement period begins). Sort these out a month or so before the spending commences!

If you're saving on your own (which is how I've read it) then you'll still have £700 per month to invest so bear in mind the annual cash ISA limits, which may well mean you'll have to find a third account for some of the money.

dorkykatie

Ohh that is a good idea, I didn't even think of spreading it around. Thank you for your help!