Best account for a deposit.

loken152

Earlier in the year we managed to become debt free and have been building an emergency fund. The plan was to then to start saving for a deposit to buy our first house, in the new year. During the year what has been just awful, i have lost my grandparents and my parents have told me that i shall be getting X amount what was a big shock to me as i didn't expect it at all. This amount is the region of what we had as our target for a deposit, my question is what is the best account to put it into? A Regular saver that is current in the range of 5% or into a LISA? I don't know much about these account and i shall be going off once i have typed this to read up on them.

Eco_Miser

You can put £4000 into a LISA now, and another £4000 after April 6th 2018, giving you £10000 when you allowed to use it in a year's time.
You can only put limited amounts into Regular Savers (£250- £500 max per month depending on which one).
Some Regular Savers require you to have another account with the same bank/building society. Nationwide FlexDirect pays 5% on £2500 (for a year, if you've not already had this) and entitles you to the saver at 5% on £250 a month.
See lists of Regular Savers in posts 2-8, and post 9 for lump sums.

badger09

Eco_Miser wrote: »

You can put £4000 into a LISA now, and another £4000 after April 6th 2018, giving you £10000 when you allowed to use it in a year's time.
You can only put limited amounts into Regular Savers (£250- £500 max per month depending on which one).
Some Regular Savers require you to have another account with the same bank/building society. Nationwide FlexDirect pays 5% on £2500 (for a year, if you've not already had this) and entitles you to the saver at 5% on £250 a month.
See lists of Regular Savers in posts 2-8, and post 9 for lump sums.

And as there are 2 of you, you can each do this.

loken152

Eco_Miser wrote: »

You can put £4000 into a LISA now, and another £4000 after April 6th 2018, giving you £10000 when you allowed to use it in a year's time.
You can only put limited amounts into Regular Savers (£250- £500 max per month depending on which one).
Some Regular Savers require you to have another account with the same bank/building society. Nationwide FlexDirect pays 5% on £2500 (for a year, if you've not already had this) and entitles you to the saver at 5% on £250 a month.
See lists of Regular Savers in posts 2-8, and post 9 for lump sums.

Thanks for that, well after a bit of reading my plans all seem to have a spanner in them. I ll figure it out, i just don't want that amount in my current account for to long would like to put it into a some kind of saving I know that i haven't used my ISA allowance up so might just put use that. I will have a good look at that link in a second thank you.

djpailo

loken152 wrote: »

Thanks for that, well after a bit of reading my plans all seem to have a spanner in them. I ll figure it out, i just don't want that amount in my current account for to long would like to put it into a some kind of saving I know that i haven't used my ISA allowance up so might just put use that. I will have a good look at that link in a second thank you.

I don't understand this statement. The best savings accounts for lump sums of money are all current accounts. What I don't understand is why this may be difficult for you? Putting all the money in an ISA would be a terrible move.

loken152

djpailo wrote: »

I don't understand this statement. The best savings accounts for lump sums of money are all current accounts. What I don't understand is why this may be difficult for you? Putting all the money in an ISA would be a terrible move.

Yes true, my head has been swimming with this at the moment. I have spent my lunch time looking at different accounts and have come to the same conclusion that the current account maybe the best way to go.

binaryuniverse

Current accounts with a combination of cycling that through regular savers is the way to go.

Eco_Miser

And remember that as a couple you can generally have three interest-paying current accounts with each bank - one each and one joint. Some banks allow more than one each, so don't get a joint with them.
If your new to this, take your time, each bank has different (but similar) Terms & Conditions, and extra T&Cs for the savers.
If the amount is more than comfortably stashed in the LISA and current accounts, then open the best paying easy access normal saving account at the time (rates are going up, don't act too soon) for the rest, and feed the RSs from it indirectly through the linked current accounts.

loken152

So if i was to use a current account as a feeder account into different saving accounts. Something like the nationwide Flexdirect that pays 5% on the first £2500, as this account needs £1000 paid into a month, i could set up a standing order to pay that amount out and back in from another bank account. To get the interest on the £2500?

Eco_Miser

Yes, or do it with Faster Payments - takes a few minutes every month but you can alter the payment to take account of the exact interest, and any other variations.

xylophone

How much are you due to inherit? When do you plan to buy?

You say "we" - you and spouse?