Saving more than expected for a house; where to put the rest?

Skiddywinks

Hello everyone.

So I started saving for a house in March, and after doing some research went for a Lifetime ISA so that I can make use of the £4000 a year cap compared to the £2400 of the Help To Buy. Averaged out that is £333.33 a month, which was easily done once I had some direction and a goal.

However, I knew I could save more, and was unsure what to do, so opened a simple savings account to go along with my current account (Santander). I figured why not since I use the old 123 Credit Card so got some better rates. That maxes out at £200 a month, and they pay it all back in to your current account after 12 months. Well, it is now November, and I have already maxed out the ISA for the year, and should easily be able to have an extra £1000 by the time it refreshes. Between that and the £2400 I will get from the savings account, I have no idea where to put it.

I plan on buying a house in another three or so years (no rush, no reason to pick any location over any other at the moment, etc), and will likely be renting it at first (I'm in the Army, so hopefully should be able to get Consent to Let quite easily). So wherever the money is doesn't need to be quickly accessible or anything. I just don't know where would be best to put it.

AdrianC

https://forums.moneysavingexpert.com/forumdisplay.php?f=17
https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

nyermen

I feel your pain
In seriousness - if you're sure you won't need the money for 3 years (no chance of wanting to buy earlier, etc), then you'll get better rates by locking it in for the period. AdrianC's links above are great - the fixed rates are going to be the best.
I used to recommend NS&I, but these days they don't seem to be very competitive, they're about to strip the real inflation proofing from my bonds too