Best Savings Account for this situation

Peartree

Hoping you can suggest a good option for this specific situation.

I like to put away a certain amount of money each month specifically to cover what might best be termed 'household maintenance' expenses, ie, replacing appliances that unexpectedly go phut, specific projects on the house and garden (which I'm slowly renovating) etc.

I've got a pension and other investments that I'm happy for medium and longer term savings, loss of job, etc, etc. What I'm interested in is the best deal possible for this situation:

- Saving, say, £100 per month.
- Flexibility to stick in a bit more if I wanted.
- Instant access is not essential, I could live with, say, up to 30 days notice, doing a credit card juggling if necessary.
- I would like the account with the best ongoing rate and don't want to have to be moving around every year because the rate drops significantly at the end of a specified term. (Although clearly I will try and keep an eye on it to make sure I'm getting a reasonable deal, I don't want to be stuck with a diary date when I have to reorganise everything).
- Withdrawals could be erratic, maybe nothing in a year as I'll cover it all within my monthly budget, or maybe the car goes wrong and the washing machine dies and I need my fund!
- I'm unlikely to let the balance accrue more than around £1000 - if it does, I'd probably sweep it up into an investment at ISA deadline time!
- I don't want to change my current account.
- If poss, I'd like to be able to manage the account online.

Is it a bit of a tall order expecting to get a decent rate with these restrictions!?! I'd be interested to know what the difference between the best and worst accounts would be saving £100 per month (no withdrawals) over the course of the year?

Any thoughts would be most welcome.

Peartree

Cypher

Possibly something like the LTSB Monthly Saver
8.00% AER fixed for 2 years.

Only one deposit allowed in each month though but this can be between £25 and £250 withdrawals are allowed so it would suit your situation.

Not wanting more than £1000 in the account is a problem though as it really defeats the reason for having the 2 year 8.00%

Have you thought about a standard Hi Interest Savings account 5.45% at IceSave and ICICI you money can come and go as it pleases then.

Jake'sGran

You could use the Ice Save bank currently paying about 5.4%. No notice for withdrawals which have to be made to your linked account which for you would probably be your current account. I have just opened one as I could not see any downside as there are with other instant access Internet banks. Also, Cahoot are paying 5% with no restrictions - need a linked account again. These rates are better than the monthly savings accounts. If your current account had been with Smile I would have suggested them as it is so easy to switch between the current account paying over 3% and their savings account paying 4.5%. Very easy to use and good service.

Peartree

Funny you should mention Smile, Jake'sGran. I AM with Smile and the comments in your final sentence are why I don't want to move my current account! However, it hadn't occured to me to think about the deal I am getting interestwise over the two accounts rather than just their savings.

It's made me think about things in a new light, thank you.