Best account for short term saving

gekko2102

Hi all. Hoping to get some advice on selecting an account for short term saving please.

My partner and I are looking for an account where we can deposit money each month (around £500 for the first 4 months and then probably up to £1K per month in the medium term) in order to save up for house projects. Once we've saved the money to complete the next project on our list, we'd remove the cash and start saving again. For the first project on our list, we'd be looking to save around £5K.

I've looked at ISAs and high interest paying current accounts (e.g. TSB Classic Plus). We are both higher rate tax payers.

What would you advise?

ColdIron

High interest current accounts are your best bet but you could check out First Direct's Regular Saver. Forget about ISAs

gekko2102

Thanks for the response ColdIron. I'll check out the First Direct option.

Any other suggestions out there? Thanks in advance.

YorkshireBoy

gekko2102 wrote: »

Any other suggestions out there?

There's really nothing else to add is there?

Between the two of you, you can get up to £13.5K into 5% current accounts with TSB and Nationwide (one sole each plus a joint), generating 3% after HR tax.

The FD regular saver wouldn't be as flexible should you want early access, so the extra 1% might not be worth it.