How best to save money for a deposit on a house.

Red_Man_2

Hi, me and the OH have recently started saving for a house. We're currently saving £500 a month but it will increase soon.

We're looking to save around £12,000.

We are currently putting our money into a Halifax saver account but we can only put £500 a month in and since we're looking to put more money i was wondering if any of you could give me advice as to were it should be going.

Thanks

Quietgirl

I would think if you each open a mini cash isa and fill those up first. Then look at using a regular saver. Yorkshire bs does a good one. Thats what i'd do.

Rose_Crow

Yup I'm doing the same. Fill up the ISA first then move onto a decent regular saver. I'm going to chuck some at the Premium Bonds for good measure too - you never know

Jake'sGran

If you are tax payers it would be best to use up you mini cash ISA allowance first as already mentioned. There are some good rates around but some some with conditions. Egg is paying 6.55% but only for 6 months after which it drops below 5%. They say that over the year this equates to around 6%AER.
Have a look at the list of best ISAs at the top of the forum section. With the rest I would put it in a good high interest account (instant access) or if you
definitely won't be touching the money use a one yr bond on which the rates will be a bit better. Birmingham Midshires has a one year fixed rate bond paying 6.23%. It is expected that there will be an interest rate rise very soon but I think the 6.23% will still be a good bond to have especially as it is only for one year.

JammyB_3

Jake'sGran wrote: »

Egg is paying 6.55% but only for 6 months after which it drops below 5%. They say that over the year this equates to around 6%AER.

Where did you get this from? I can't see any mention of it on their site. Further, they guarantee to at least match the base rate until April '09, so I don't see how this can be correct.

morg_monster

Think Jake'sGran might mean ING? The Egg one is 6.05% with guarantee to stay at least at base rate as you say above.

Jake'sGran

morg_monster wrote: »

Think Jake'sGran might mean ING? The Egg one is 6.05% with guarantee to stay at least at base rate as you say above.

People keep assuring me I am not losing my marbles but seems like they are wrong. Sorry about that. Maybe it's because they both have only 3 letters in their names:o I'll lie down now. It is ING of course.

batwell

I would pay debts first. I know it's 0% but nicer to save without any debt. My opinion anyway then ISA is the best way.

Primrose

I'd definitely opt to use up both your annual Cash ISA allowances if you are taxpayers first. One year fixed rates bonds, such as Birmingham Midshires are good if you already have a lump sum you can tie up for a year but otherwise check around for the best savings rates and be prepared to move them after initial extra interest bonus offers have expired. Bearing in mind the hastle it takes with Money Laundering regulations to open new accounts these days, I suggest that if you move accounts, you keep the minimum amount required still invested in case the account later becomes more competitive and you want to return to it.