Saving for a car

Giddy72

So, I bought a new car in October which means 37 months after the agreement I will have to pay them , lets call it, £8,000

I have been ring fencing £220 every month in my Santander Current Account @ 1.5% interest but I am saving for other things in this current account plus living my life and so I have decided I need to open some sort of savings account to separate it from everything else.

So, I have a lump sum of £1,540 and then I want to save £220 each month.

Any ideas as to the best way to do this? I had opened a Santander ISA with a lump sum but I wasn't able to add to it each month and so had to close it again.

It's so HARD!!!!

Any advice from you lot would be greatly received!!

eskbanker

As a Santander 1-2-3 account holder you're entitled to 5% from their regular saver product on up to £200 per month: https://www.santander.co.uk/uk/savings/regular-esaver

Other regular savers and interest-paying current accounts offer relatively decent interest rates, check out the quick links above labelled 'top savings accounts' and 'how to start saving'.

Alexland

eskbanker wrote: »

As a Santander 1-2-3 account holder you're entitled to 5% from their regular saver product on up to £250 per month: https://www.santander.co.uk/uk/savings/regular-esaver

Santander's regular saver limit is £200 per month.

But its still one of the best because like the 5% Nationwide regular saver it's easy access. Also worth considering the 5% Nationwide Flex Direct account to deposit £2500 for 12 months at 5% but sadly this is a one time only offer.

Also if you have not yet bought a property you could consider using a HTB ISA for the good rates and then simply withdraw the money to pay for the car.

Alex.

Crystal_Pixie

When I started my car lease 3 years ago I had 2 regular savers (Lloyds and TSB) going to save up to buy another car outright.


If you can afford it this is a good way of lowering your payments. I managed to save £4k as a deposit on a nearly new car instead of just going for another lease.


A combination of current accounts and regular savers works well.

kidmugsy

Giddy72 wrote: »

... I bought a new car in October

Well that's not in the spirit of MSE. Though if there is about to be a burst of 1970s-style inflation then I suppose it's all right. Maybe.

AndyPK

I'm pondering a natwest builder saver.

I think you can dump a lump sum in and add to it every month.

need to pay in at least £50/month to get the interest 1.5% (on first £5K)

1% on £5K-10K

Giddy72

kidmugsy wrote: »

Well that's not in the spirit of MSE. Though if there is about to be a burst of 1970s-style inflation then I suppose it's all right. Maybe.

I know!! What am I like??!!

It's lovely though

Giddy72

AndyPK wrote: »

I'm pondering a natwest builder saver.

I think you can dump a lump sum in and add to it every month.

need to pay in at least £50/month to get the interest 1.5% (on first £5K)

1% on £5K-10K

That's a poor return though?

Is there nothing that will beat inflation?

Giddy72

eskbanker wrote: »

As a Santander 1-2-3 account holder you're entitled to 5% from their regular saver product on up to £200 per month:

Other regular savers and interest-paying current accounts offer relatively decent interest rates, check out the quick links above labelled 'top savings accounts' and 'how to start saving'.

I have one of there, but there is a maximum of £200 a month and no lump sum at the beginning

ValiantSon

Giddy72 wrote: »

That's a poor return though?

Is there nothing that will beat inflation?

Other than regular savers, no, there are no easy access accounts that will beat inflation, other than a Nationwide FlexDirect current account, which pays 5% on £2,500 in the first year. It also gives you access to the 5% regular saver (£250 per month).

eskbanker

Giddy72 wrote: »

eskbanker wrote: »

As a Santander 1-2-3 account holder you're entitled to 5% from their regular saver product on up to £200 per month: https://www.santander.co.uk/uk/savings/regular-esaver

Other regular savers and interest-paying current accounts offer relatively decent interest rates, check out the quick links above labelled 'top savings accounts' and 'how to start saving'.

I have one of there, but there is a maximum of £200 a month and no lump sum at the beginning

Good that you have a Santander regular saver, but it obviously would have been better to mention it in the first place when you were stating that your monthly savings were still in your current account and that you were looking for somewhere separate for them:

Giddy72 wrote: »

I have been ring fencing £220 every month in my Santander Current Account @ 1.5% interest but I am saving for other things in this current account plus living my life and so I have decided I need to open some sort of savings account to separate it from everything else.