Savings dedicated to house deposit

Blinkinink_2

Hi all,

I'm researching the best savings method in order to save for a House deposit in the next coming years.

I will not need to be able to access the savings, as all money that goes in there will not be touched again until there is enough for the complete deposit.

I do not have a large sum to put in initially to start off the account, It will be a case of little and often i hope and it will build quite quickly.

Are there any accounts with mortgage providers would provide additional benefit to the account holder if they know the money is going to be used as a deposit?

Any and all information you can suggest/provide would be very useful.

thanks in advance,

chris

calypso_rhapsody

If you go to http://www.moneysavingexpert.com/savings/best-regular-savings-accounts and page down enough you will find info about Santander's First Home Saver account. You can put up to £5k in to start and then £100-300 pm. It pays 5% which is pretty good! There are also other regular savers paying more (if you are a First Direct customer, 8% on up to £3.6k)

But do read the bumph and be clear about how regular savers work - if you put £100 pm in for a year you won't get 5% on £1200 = £60 - but effectively on £600 as the interest accrues on the balance in the account each day .... so £30.

good luck with your savings!

xrjtg

The First Home Saver is a very good choice if you can commit to a regular amount each month. Otherwise, or for any contributions over the £100 a month, look at the best paying instant access Cash ISAs (also covered on the main site).

Santander will invite you to a mortgage interview before you close the account if you go down that route. Be very aware that you are under no obligation to take a mortgage from them, and you should definitely look elsewhere too when the time comes.

Blinkinink_2

Thanks for the advice,

I see that the first direct one needs you to have a current account with them too (assuming i can get one),

Does the santander home start one need me to have a current account with them too?

I currently have a LLoyds TSB current account (for 12 years), and a Natwest student account.
(from what i can tell LTSB and Natwest both offer poor rates on savings).

xrjtg

You don't need a current account with Santander to open the First Home Saver.

kidmugsy

You could consider converting your Lloyds account to their "Vantage" current account, which pays useful interest.