Saving for a deposit for a house

Kasiah

Hi

Please can someone point me in the right direction

Looking to open a Cash ISA to save for a deposit on a house

Aiming to save £5000 over the next 12 months putting aside £300 - £400 a month

Any help on which one I should choose would be appreciated.

Thanks

xylophone

http://moneyfacts.co.uk/compare/savings/accounts/search/ - try here.

psychic_teabag

Note that you could possibly do better with a regular saver than an ISA : could get up to 8%, and there are several offering 4%. Even with tax deducted, that's better than you can currently get in a cash ISA. As a long-term strategy, ISA is great, but if you plan to spend the money soon, you can consider other options.

When the regular saver matures in 12 months, could move the balance to an ISA and start again.

Kasiah

Thanks for your help have been deliberating over whether to open a savings account or not, the taxman getting their paws on it put me off

I'm currently with HSBC and they offer 4% on a Regular Savings Account but max deposit of £250 and I wanted to put more away

What about if i opened up a Cash ISA with Leeds BS with 3.25% putting £200 in that and £250 in the regular savings account

Emma

qpop

If you have £450 / month to save the "optimum" way would be to open a First Direct Reg Saver for £300 per month (8%AER gross) and the top paying instant access ISA for the rest (3.0% AER tax-free with M&S Money) - putting the balance in an ISA on maturity.

In reality I'd sooner load up the £150 / month in an instant access savings account (taxable) so as not to "waste" ISA allowance by typically expenses (car maintenance, insurances, etc.)

It's also worth assessing the savings/borrowings level and make sure expensive debts are repaid first.