Savings

KAD

I have £6000 to start a savings account with, and plan to deposit another £400 monthly. What would be the best account/options to maximise benefits. I can only 'lock in' for max 3 years and if possible be able to gain access to it if needed. Any suggestions would be great.....thanks.

fiestaman87

£2500 in a Nationwide Flex Account at 5% (although only for 12 months).
£1500 in a TSB Classic Plus Account at 5%.
Tesco Current Account for the rest at 3%.

All 3 need a regular amount paying in each month although the Tesco account needs 3 DDs each month. You can move money between each one.

You can get a regular saver with Nationwide and pay in up to £250 each month for 12 moths at 5%.

Also Virgin Money have a regular saver at 3% which you can pay in up to £250 each month for 12 months although it needs to be opened in branch and cannot be managed online.

I hope this helps.

YorkshireBoy

As above, you should be able to get all of it making 5% AER for a large part of the first year.

Probably looking at 4% in years 2 and 3 (assuming things stay as they are).

But if you're looking to "maximise benefits" then you should run few current account switches in parallel with the current/regular accounts. Probably make another £6-800 over the first year alone (5% on £6,000 for a year = £300, so you'd almost double your 3 year return [excluding the £400 ongoing payments]).