Saving for house/mortgage

micky045

Wasn't whether to post this in savings or mortgage section so I've opted for here.

I'm currently saving for a mortgage for a house and at present have about £2000. I am aiming for between £8K-£10K for a deposit and saving at a rate of between £500-£700 p/m (depending on how much I get paid. At present I just pay the money into my parents bank account to stop me from spending it (I probs won't anyway, but I didn't trust myself), however I don't think this is the best place for it and I'm looking for some advice on what I should be doing to get the most out of my savings.

I have been looking at instant access savings accounts but the rates don't look great from what I have seen. I also thought about a cash-ISA, but I don't think I will be able to get access for 2 years.

Anybody got any advice based on personal experience.

Thanks

xylophone

There are instant access isas if that is what you want.
You might consider putting your £2000 into an on-line ISA with say Nationwide straightaway, then adding your Feb and March contributions.
You can open a fresh ISA on April 6th - as it is the start of the ISA season you might find a regular saving ISA with a good rate then. You will be able to save up to £5640 tax free.

http://moneyfacts.co.uk/compare/savings/accounts/search/

Spiggle

There's also the option of an account specifically aimed at FTBs saving for a deposit. I know Nationwide offer one but the rate isn't as good an ISA. I think it's a guaranteed 2% above base and so would rise if the bank of england rate rises. Basically you have to save regularly with them for at least six months. It may be worth a look it's on their website http://www.nationwide.co.uk/savings/limited_access/savetobuy/introduction.htm

There may be other banks or building societies offering the same or similar too. Just a thought.

All the best,
Spigs