Best place for £12k house deposit

buenfoxa

Where is the best place to put just over £12,000 for a 3 - 4 month period? The money will form part of the required amount for a house deposit. I could put circa £2k into my ISA to use up this years allowance but I'd like the rest to into the highest rate account.

Thanks for the your help!

opinions4u

Link from the top of the page.

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

If your bank pays over 2.75% I'd stick it in their best easy access account.

Totton

I wouldn't bother putting it into an ISA for 3-4 months, stick it in the highest paying and safest easy access a/c you can. Should you find yourself with money for the ISA later then you've already used part or all of this years entitlement, best to leave that as a future option I think.

bowlhead99

I agree with not using the last 2k of your ISA allowance, assuming that between buying the house and next Aprl 5th you can save the 2k up again. 2k for 3 months at 3% is only 15 quid. Whether you're in a 20% or 40% or 50% or 60% band, the relief is not worth having.

However if you can preserve the space in your ISA for now and put 1-2k away next March, you couls save hundreds by sheltering the interest (or dividends/gains in a stocks & shares ISA) from tax over the next several years.

I've used zero of this year's cash ISA allowance for that reason (i.e. I have cash in an OK savings account which I probably need to take out and use later this year, and will be able to fill the ISA next Jan-March instead).

Steve_xx

Coventry Building Society's Telephone Save Account is the current winner at 3.25% for instant access.

• Best Buy variable rate of 3.25% AER*/gross p.a. rate includes a 1.25% AER first year bonus
• Invest between £500 and £250,000
• Unlimited deposits, each for a minimum of £500 until 31.10.2012 - no further deposits allowed after this date
• Unlimited withdrawals for a minimum of £500

http://www.coventrybuildingsociety.co.uk/savings-and-investments/home.aspx