Best way to save £100/Month for 3 years

[Deleted User]

Looking at putting £100/month away for a fixed 3yr period, I won't be needing access to it, what's the best deals to maximise interest?

Thanks.

Archi_Bald

Interest paying current accounts. Start with the best and simplest, a TSB Plus. Pay in £500 a month, take out £400 immediately after the £500 landed. Set your statements and correspondence to paperless to receive 5% AER.

Review the market when you approach £2,000 in around 18 months time. A second TSB Plus might be the right answer then.

[Deleted User]

OK thanks, but my bank (First Direct) has a regular saver that offers 6% for 12 months, so I guess I can just do 3x of these, and then store the money somewhere else after each 12 months.

Ryan_Futuristics

If it's worth the effort ...

£100/month over 12 months at 5% (6% taxed?) you'd be looking at having made about £27 by the time you've got to shift it somewhere else

I looked into it once and concluded it would probably a better use of energy just to stop buying Finest Range chicken for a few weeks

I'd put it into a good equities fund myself, a) because there's potential for it to make a decent return, and b) it's worth it for the learning experience

Over 3 years you should be buying through a range of market conditions, so the idea of just losing 30-40% of your investment would take quite a bit of bad luck

But if you need the money in exactly 3 years, then it's possible you'd be on a dip when you needed to withdraw (but then if the dip's another recession: we'll all be poor again anyway! There's no hiding)

Archi_Bald

mgillespie wrote: »

OK thanks, but my bank (First Direct) has a regular saver that offers 6% for 12 months, so I guess I can just do 3x of these, and then store the money somewhere else after each 12 months.

If you already have an FD account, it would obviously make sense to use their reg saver. The "somewhere else" in 12 months time should be something like the TSB Plus.