Regular savings but occasionally lump sums

InsideInsurance

Well its probably time to start saving for a house, we dont want "stability", probably the opposite but are fed up of having to live with landlords choice of decorations etc.

So, probably take 2 years, being a contractor/ consultant income can be a little variable but should be able to put away between £2-3k a month most the time. There is a risk of a drought of work and needing to withdraw monies.

Was looking at the Newcastle Big Home Saver ISA and getting one each which would allow £2500 a month to be put away with 2.4% interest inc bonus for saving. There is a further £1k bonus if you get a mortgage with them but doesnt appear to be any disadvantage if you choose to use the monies with another provider.

Are there any better offers out there? The mortgage bonus seems unlikely given that for over a 80% LTV they only lend up to £350k and as we are looking at London it'll probably be over that.

Archi_Bald

The Newcastle only takes £1,250 a month, so unless (and may be even if) you are talking 2 ISAs, you'd need something else as well.

You haven't mentioned whether we are talking basic rate tax payer(s) or higher rate or whatever - but even for higher rate ones there are some additional options:

1. Nationwide FlexDirect, 1 year, 5% AER, max £2,500
2. TSB Plus, 5% AER, 2 accounts per person plus 2 joint account, max £2,000 per account = max £12,000 at pretty unbeatable rate
3. Club Lloyds, 1 per person, £5,000 max, 4% AER provided balance is between £4K and £5K. Also gives you access to 4% Regular Saver, max £400 a month
4. First Direct Regular Saver, 6% AER, max £300 a month

Instant access is only a problem with the Regular Savers.

I am tempted to think you might be better off outside an ISA, at least for a year.

InsideInsurance

Archi_Bald wrote: »

The Newcastle only takes £1,250 a month, so unless (and may be even if) you are talking 2 ISAs, you'd need something else as well.

You haven't mentioned whether we are talking basic rate tax payer(s) or higher rate or whatever - but even for higher rate ones there are some additional options:

1. Nationwide FlexDirect, 1 year, 5% AER, max £2,500
2. TSB Plus, 5% AER, 2 accounts per person plus 2 joint account, max £2,000 per account = max £12,000 at pretty unbeatable rate
3. Club Lloyds, 1 per person, £5,000 max, 4% AER provided balance is between £4K and £5K. Also gives you access to 4% Regular Saver, max £400 a month
4. First Direct Regular Saver, 6% AER, max £300 a month

Instant access is only a problem with the Regular Savers.

I am tempted to think you might be better off outside an ISA, at least for a year.

There is wife and I hence the £2,500 per month by having the two ISAs

I am higher rate tax payer, she is currently basic rate but likely to become higher rate next year when she leaves uni and gets a job.

We have Nationwide's flexdirect already and they are coming near to the end of their 1 year rate with both already over the £2.5k. Will be looking where to move that in September I think

She has 2* TSB and I have 1* TSB that are maxed out, next step was another TSB for me. Didnt realise you could get an additional 2 in joint names but at the moment we have no financial association.

Will look at the Lloyds too as didnt know you got the 4% on the full balance, I had assumed it was just on the ~£1k thats between 4-5k

Herbalus

There isn't a single product out there that I'm aware of that does what you want. Your best solution will be multiple current accounts.

You can also get the Newcastle big home saver ISA in non ISA form, so that could double to £5k month max, although 2.4% becomes ~1.3% after higher rate tax so not the best.

Eta: I would go with Newcastle bh ISA x 2 plus FD reg saver plus Lloyds club reg saver (after you've put £5k in the club current account. That should be up to £1950 each per month, and you could use the balance in the Lloyds club current account as a float if work is short in a month.