Where to put my small pot of money?.

Bookowl

Hi,
I have a small pot of money that I’d like to put away somewhere, rather than having it in my current account currently. The long term goal would be a mortgage deposit, but don’t have a help to buy isa yet. I’d like to put my small pot in a savings account and then have a recurrent DD to the help to buy isa. I’d hope to put away £30/£40 weekly,as I get paid weekly. What are the best savings account on the market for what I want to do?

xylophone

How much money is involved?

Owen1991

If you're not looking to buy within the next year and you're a first time buyer I'd setup a S&S LISA/Cash LISA to save £4,000 a year.

Bookowl

£8500 currenlty.

Bookowl

I’d be looking to buy within the next 5_7 years, what’s the LISA and is there a minimum pay in every month?

xylophone

You might consider a LISA. (£4000).

https://www.skipton.co.uk/savings/isas/lifetime-isa

You might open a Nationwide Flexdirect current account and a TSB Plus current account.

You would deposit £2500 in the former and £1500 in the latter and set up a Standing Order for £1000 from NW to TSB and from TSB to NW on the same day each month for a year - sometime between 4th and 20th month probably best.

You could then open a Nationwide Flexclusive monthly saver and deposit your £50 a month together with interest arising on the Flexdirect and the TSB plus account.

When the 5 % interest on the Flexdirect ends after a year, you could transfer the £2500 in the Flexdirect plus the £1500 into the LISA and the money saved in the Flexclusive saver into TSB.

You would then need to decide whether you would keep the Flexdirect so as to continue to qualify for the Flexclusive saver.

To continue to earn interest in TSB you would need to cycle in /out £500 a month.

You could then continue the saving into LISA in subsequent years with lump sums saved in the other accounts.

Owen1991

Bookowl wrote: »

£8500 currenlty.

If you open one now or before 5th of April you could put £4000 in, then another £4000 in on the 6th of April and by the end of April/early May you'll have the bonus added making that £10000.

Theres no minimum monthly contributions, the limit is £4000 a year, not sure if you can set up a direct debit, but it's easy to make deposits when ever you want on the lipton website, if you chose a cash LISA

Eco_Miser

xylophone wrote: »

You could then open a Nationwide Flexclusive monthly saver and deposit your £50 a month together with interest arising on the Flexdirect and the TSB plus account.

The OP said £30/£40 weekly. That can be done, up to £250 per month can be saved, and I'd recommend making the monthly deposits up to £250 by reducing the TSB balance, thus saving more at 5%.
If the balance there drops to £1000, change the SOs to £250 weekly - same total but lower balance required for safe operation.

Bookowl

With the LISA do I get a bonus? And can I use the LISA for making withdrawals encase. I need to use the savings for something else?

Bookowl

Just to clarify I would need to open a nationwide flex direct and a tsb, deposit from the NW flex direct to tsb?
Are there.other options I could look at?

Eco_Miser

Bookowl wrote: »

Just to clarify I would need to open a nationwide flex direct and a tsb, deposit from the NW flex direct to tsb?
Are there.other options I could look at?

If following xylophone's suggestion, yes.

See the quick links at the top of each page for more ideas.