Approach for monthly savings. Mortgage is the main aim.

Cagh

Hi everyone,

I am a full-time employed adult, who would like to save about £1000/month for at least 1 year. The main aim of my savings is to get a mortgage.

I have already opened something called Club Lloyds Monthly Saver with my bank. It's offering 2.5% interest/year. Maximum deposit is £400/month. Apparently, this is the best savings account in terms of interest rate within my bank.

I am left over with £600 to save every month.

Do you have any suggestions on what's the best approach? What other saving account(-s) shall I use?Would "Help to buy:ISA" (1.50% tax free/AER variable) be the best option?

I am with Lloyds Bank. Their consultants are not very helpful, as "they are not allowed to sell products by law".
So there is no specific advice from them. There are too many saving accounts on Lloyds website, and I am confused what is the best way to combine those saving accounts considering my main aim.

Kind regards,
San

nicholbb

Have a look at a different bank.



Wouldn't a LISA be a good product? Look on this site for saving options for a wide range of accounts.



From the top of my head, Nationwide 5% up to £2,500, regular saver £250 per month. TSB (if you want the risk with previous issues) £1,500 at 5%. First Direct 5% for £300 per month (with an account) and Tesco 3% for up to £6,000. I think that gets you there with lots of extra spare.



Just be careful stopping your regular savings as you can take a hit.

pinknsparkly

If you're a first time buyer then a LISA would net you more money than a HTB ISA as the maximum contributions are higher.

Just to add to the above comment - Tesco is 3% on up to £3000, not £6000 (but does require you to set up three DDs from the account).

Zero_Sum

To add to the above comment. You can get 3% on £6k with Tesco but it does require 2 accounts and as such 6 DD's
The DD's can be done by getting 2 PO savings accounts & setting up a weekly DD for each