New to Saving...don't really know where to start

KirstyO

Hi Everyone,

I'm in a nice position of being within £300 of being debt free for the first time in about 8 years (barring the student loan, but that's taking care of itself through my salary). I am also starting a new job with a pay rise and less travel costs.

I think this is a good time to start seriously saving. I currently have 2k in an fixed term ISA (until Oct 16) and pay £50 a month into a Nationwide Save to Buy account (also expiring Oct 16).

Before these two expire I'm really keen to get a nice deposit together for a house so that as the accounts expire together I can use the money that is already there towards the depoit or costs involved in setting up a mortgage and buying a home.

I need to work out my exact figures but I'm hoping to have between £200 and £300 a month to stash somewhere. I don't have any large lump sums to play with and because I know that I want to accumulate the sum over a fairly short time I would rather save than invest.

I'm not sure whether to pump this money into the ISA (2.5% until expiry when I will either use the money or move it elsewhere if necessary) or find somewhere new to put it.

I want to lock it up as if I have access to it, I'll just get tempted.

Any advice would be gratefully received.

Thanks all :cool:

Archi_Bald

Assuming you are a BR tax payer, there are at least two current , and at least three regular savings accounts that will pay you (after tax) more than the 2.5% you say you can get in your ISA. Your emphasis should be on the highest return, not on avoiding tax.

clarky_cat

First Direct's regular savings acc pays 6% after 12 months. You'd then need to set up a new regular saver if you want to do it that way.

http://www1.firstdirect.com/1/2/savings/regular-savings-account?WT.ac=FSDT_CTA_SAV_REG1003