Please critique my savings plan

Bulla

Approximately 100k to keep safe over the next year as a house deposit for my partner and I. If we spy a house sooner we will want this cash ASAP hence the easy access plan below.

I'm aware of the savings loophole but I am conscious that opening too many accounts wont look good on a new mortgage application.

So my plan is

Joint Santander 123 with £20,000 to open. All DD's to go through this for cashback. This will be topped up each month with money from wages to cover all DD.

A TSB Classic plus account in each name with £2000 in each account.

That leaves £76,000 plus £1000 a month we'd like to save from our wages.

I'm un-decided on whether to

put the balance into Premium Bonds and cross my fingers we get a win (I realise this is unlikely)

or

put £30,480 into an easy access ISA (Skipton/West Brom) and whats left over in bonds.

All thoughts & opinions are thoroughly welcome !

apt

Not sure opening current accounts with no overdraft would do any damage to your credit ratings, but if you don't want to open a lot 2 Club Lloyds accounts would be worth more than 2 TSB accounts despite paying 4% not 5% because of the higher limits and the £400 per month 4% regular saver. Two direct debits needed, but those are easily arranged from Tesco savings accounts or similar.

masonic

Can you fix for a year? A 1 year fixed rate that pays interest at maturity would pay it in the next tax year where you will likely be able to get your first £1000 of interest tax free. For example, Charter Savings Bank is offering 2% on a 1 year fix. That would slot in nicely after the Santander and TSB accounts.

kensiko

Why not open 3 Santander accounts for a total of £60,000?

If you have at least 6 DD's you could split them so 2 are associated with each Santander account:
1 Joint
1 Your name
1 Your partners name

You may only be able to fund £500 to one of these accounts but you can easily make transfers from another bank and transfer it back immediately. I think you have to do this from a non Santander account though so couldn't cycle the £500 between your 3 accounts although someone maybe able to confirm this?

I am not sure if all those accounts would cause issues on any future applications but I would doubt it as they are just current accounts. Maybe just ensure none of them have an overdraft facility.

Bulla

masonic wrote: »

Can you fix for a year? A 1 year fixed rate that pays interest at maturity would pay it in the next tax year where you will likely be able to get your first £1000 of interest tax free. For example, Charter Savings Bank is offering 2% on a 1 year fix. That would slot in nicely after the Santander and TSB accounts.

Hi Masonic, unfortunately not. We are going to be in rented accommodation and if Mrs Bulla sees the house of her dreams before that year is up then we will up sticks and move !

ktk

Rather than Premium Bonds you could put the larger amount in NS&I Income Bonds. Although this only gives 1.25%, it does allow easy access.

gt94sss2

As Kensiko has suggested, as a couple you can open 3 Santander Accounts.

If you are happy receiving 3% Gross, have a look at opening Bank of Scotland Vantage accounts - you can put £5,000 in each and (I think) have up to 3 in each name. Unlike the Santander accounts, you can also set up internal standing orders to meet the £1,000/month funding requirement (so £30,000 in total)

Regards
Sunil

LeoTLion

kensiko wrote: »

I am not sure if all those accounts would cause issues on any future applications but I would doubt it as they are just current accounts. Maybe just ensure none of them have an overdraft facility.

Isn't credit checking part of the ID verification process when opening a new bank account regardless of whether an overdraft is needed?

kensiko

LeoTLion wrote: »

Isn't credit checking part of the ID verification process when opening a new bank account regardless of whether an overdraft is needed?

Sorry, I wasn't very clear. I meant I wouldn't think the number of current accounts would affect any future mortgage applications the OP will be making.

I only mentioned making sure there were no overdrafts on any accounts just in case they formed part of available monies loaned by companies. Even if the overdraft isn't used it may flag as part of their credit history, a bit like having a £5000 credit card and only ever using £200 of it. Your credit rating would show that you have a full £5000 borrowed I think.

Bulla

Thanks everyone for all of the advice.

My revised plan is now.

3 x Santander 123 accounts with 20k in each.

2 x Club Lloyds accounts with 5k in each.

The remaining 30k split across 2 x Cash ISA's

Then the monthly £1000 will go into Bonds with my fingers crossed for a win !

Now I just need to work out my potential returns ! :think: