Saving £600 per month

Pesto2606

Looking for some advice if possible

About to start saving circa £600 until January with a view to bump this up to closer to 1k a month thereafter in order to save a deposit for a house and have no idea the best way to save this.

I've read regular savers are a good way forward with good interest rates but usually have a cap @ £300 per month. Also read that ISA's at the moment aren't really great for interest rates.

I don't need to make withdrawals but only intend on saving for 1 year (maximum 2yrs) oh and also may have up to 5k to add in March

Thoughts / suggestions?

Any advice is appreciated

jimjames

Any tips here?

https://forums.moneysavingexpert.com/discussion/5057482

Someone else with the same amount

Lankyman

Interest rates are rock bottom and shares are too volatile for such a short investment timescale. I'd go for premium bonds. The average rates are rubbish but at least you have a chance of winning big and your money is secure

Pesto2606

Thank you jimjames :-)

I had seen that post and that's where I learnt a little about the regular savers. To be honest I was a little confused around how would I go about meeting the requirements of the current account without wanting to actually use it as a current account. I read it a couple of times but couldn't wrap my brain around it. Forgive me I'm still young(ish) lol

And lanky man I have no idea about premium bonds but I'm sure there is info on here that can help me so that's certainly something I'll go and look at now and try to fully understand.

I just need some impartial advice because I feel like if I approach my bank they will just try to sell me one of their products

I have never really saved you see... Other than an easy saver with the same bank as my current account and it's only ever been used to save for holidays or Christmas etc but it's time for me to get be a proper adult now lol

pauljoecoe

Could open a couple of regular savers a £300 each. First direct is good at 6%. You would have to open a current account there too though. Why not open a TSB classic plus current account (or 2) and add 600 per month (up to a max of 2000 though ) If you open a current account you need to satisfy their requirements i,e, pay an minimum amount in each month, or set up a direct debit or two. But if you use your present current account to set up a payment in and then just pay it back out again a day or two later that will suffice.

Not easy to get good rates on savings as the moment but you can if you put a little effort in. some ideas here:

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

Eco_Miser

If you mean making the required monthly deposit, you just move the necessary amount from account to account in a circle, using Standing orders or faster payments, all on the same day.

If you mean the direct debits, and you haven't got enough 'proper' ones, open TESCO Bank Internet Saver and Instant Access Saver accounts and fund them by DD for small amounts from your current accounts requiring DDs. Maybe collect the interest this way?

Hooloovoo

Eco_Miser wrote: »

If you mean the direct debits, and you haven't got enough 'proper' ones, open TESCO Bank Internet Saver and Instant Access Saver

Any reason it specifically needs to be the two different types of account? I opened two Internet Savers and attached DDs to my Halifax Reward account. It still comes up as two separate mandates and meets the requirements.

Am I missing something by not having the Instant Access account?

probiz

Pesto2606 wrote: »

Looking for some advice if possible

I've read regular savers are a good way forward with good interest rates but usually have a cap @ £300 per month. Also read that ISA's at the moment aren't really great for interest rates.

I am putting 1k/month into the Nationwide scheme. This is the maximum permitted. Good luck

bsms1147

Hooloovoo wrote: »

Any reason it specifically needs to be the two different types of account? I opened two Internet Savers and attached DDs to my Halifax Reward account. It still comes up as two separate mandates and meets the requirements.

Am I missing something by not having the Instant Access account?

Accounts of the same type will work, as you have found. The message hasn't got through to everyone just yet

Archi_Bald

Nationwide is perfectly safe up to £85K as long as your account(s) are not involved in any illegal transactions.

Pesto2606

Really good advice here guys thank you so much. Will defo look in to the nationwide regular save also thank you pauljoecoe and Eco miser that makes a lot more sense now regarding he current account.

You wouldn't be able to get the switching offer though with any of these would you? Say like £100 to switch... Because they'd want you to switch all of your dd's etc using their switching service. Is that right?