Naive Question - 5-10% ?

Saga

I've saved a small but relatively decent amount for a mortgage deposit, but am also toying with the idea of putting off buying for a further 12 months.

Are there any safe saving opportunities that return between 5-10% which I can lock up most of my savings for 12 months?

SeduLOUs

You won't find 10% in short term savings, but there are quite a few 5% regular savers and some 3-5% current accounts that you can fill up if you are willing to make a few monthly transfers between them.

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#currentaccount

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

JohnRo

http://www.bankaccountsavings.co.uk/

Zanderman

What SeduLOUs said.

But... most are a lot less than 5%. Only, I thnk, Nationwide's FlexDirect will give a solid 5% on a lump sum and that's only on 2.5k. The other current accounts pay less than 5%, a few at 3% and a few at 2%. All only pay this on the first £1 to 3k or so. So you need to work at it to get the best return. Most have conditions to meet too.

Many Reg Savers pay 5% (most of these have conditions too!) but that's the annual rate, and as they only allow small deposits per month you'll only get that 5% pro-rata on most of the deposits, so it won't be a full year of 5% on your total investment.

10% is not on the agenda!

eskbanker

As you say on your other thread, you're a first-time buyer with a HTB ISA, but if you're not buying for more than a year you can get more money into a Lifetime ISA in order to earn 25% bonus on a larger amount (£4K/year). You can't get 25% on both a HTB and a LISA but can transfer the HTB into a LISA and pre-17/18 HTB money doesn't count towards the £4K annual LISA allowance, more details in that linked article.

If your OH is also a first-time buyer you could double up between you....

Saga

OK. Thanks for the tips.

Saga

I thought LISAs were only for 18-40yos? I'm mid-40s.

tim_n

I wouldn't overlook what eskbanker says - it's a 25% bonus for no risk (each!) You won't find a better deal. If you've already filled that up, SeduLOUs's comment will help you maximise every last penny you can.

eskbanker

Saga wrote: »

I thought LISAs were only for 18-40yos? I'm mid-40s.

Ah, yes, you're right, sorry, I didn't pick up on your age!

barginfinder

be-careful of opening too many accounts at once (i.e high interest current accounts) as these can involve credit checks and could lead to a lower credit score which will impact your mortgage costs and choices

darkidoe

Saga wrote: »

I've saved a small but relatively decent amount for a mortgage deposit, but am also toying with the idea of putting off buying for a further 12 months.

Are there any safe saving opportunities that return between 5-10% which I can lock up most of my savings for 12 months?

Naive question indeed.

Let us know if you find an answer.