saving for a mortgage deposit

chelmsford_urchin

afternoon all,

i've had a mixed financial past, but am now totally debt free and have a sum of money that i'd like to put towards starting to save for a deposit on a mortgage.

i'd like to invest the lump sum and add to it monthly and obviously get the best interest rate possible. is there a product out there that can do this, or am i best to put the lump sum in a fixed bond and then open a regular savings account?

many thanks,

xylophone

You could start a help to buy ISA in December.

http://www.moneysavingexpert.com/savings/help-to-buy-ISA

You mean to save, rather than invest, the lump sum as you are likely to want to use the capital within two or three years?

How much is the lump sum? If you can access interest paying current accounts and regular savers tied to bank accounts, then you are likely to earn more interest than by using savings accounts.

chelmsford_urchin

many thanks for responding. i have 23.5k. i was intending on putting 15k in an instant access savers until 1st december, then moving the 15k into the help to buy isa. in terms of the remaining 8k - i wish to add to it by about 400 a month, so was thinking a fixed term savings account until new tax year where i would move the rest into the help to buy isa and add until limit reached. i will look into the current accounts - many thanks for your reply

yes, i intend to use the money in 2 or 3 years for a deposit.