11k savings - where best to place it

mrobbo

I have an 11k lup sum which I would like to save. I plan on spending this in approx 6 months, as I am looking to put this money towards the purchase of a new house. I also plan on adding to this sum over this time (approx £500 per month for 6 months).

Am I best going for a straight forward savings account, or splitting the money over a few ISAs?

I have just been looking at the best cash ISA deal currently, but these only pay interest anually. If the money is in and out in 6 months, would I not accrue interest?

Any advice gratefully received.

Jegersmart

for such a short term investment I would just get the savings account with the best rate and stick it in there tbh.

calypso_rhapsody

I agree - i think the current best rate is the Coventry's Poppy account - limited to 4 withdrawals a year 3.15% .... check on the best buys link on this site.

You could put into ISAs but any one perso can only have one per tax year with a £5,340 limit this year - if there are two of you you can almost put £11k away ... you need to compare rates bearing in mind that the ISA interest is tax free ... may depend what rate of tax you pay.

mrobbo

Thanks very much for the responses. I will go for the Poppy Online Saver, I think. Ta!

lakisha2011

This is a grateful thought. I love to get it by any how....