Extra £750pm to save

guineapigseatcheese

Hi
I'm hoping to buy a house in the summer through shared ownership. While I'm living with my parents I'm able to save approximately £750 a month until then so I'm wondering where is best to do this - the regular savings accounts seem to have a max allowance of around £250 so not entirely sure the best place to save.
Anyone have any ideas?

Thank you

grumiofoundation

guineapigseatcheese wrote: »

Hi
I'm hoping to buy a house in the summer through shared ownership. While I'm living with my parents I'm able to save approximately £750 a month until then so I'm wondering where is best to do this - the regular savings accounts seem to have a max allowance of around £250 so not entirely sure the best place to save.
Anyone have any ideas?

Thank you

Have you got/are you eligible for a lifetime isa? Needs to be open for one year before you can use it so may not be suitable if you are going to buy in the summer (but can open with £1 anyway!).

Nationwide offers 5% (cannot have had before) on up to 2500 and TSB 3% on 1500.

If you want to use regular savers then you can just open 3 and pay 250 into each. A lot of the regular savers you can’t withdraw before 1 year so if you are buying in the summer may not be the best?

r1dgeback

Marcus by Goldman Sachs are paying 1.35% and that is paid monthly starting with £1 no limit and is also easy access

colsten

If you expect to need the money this summer, you are limited to instant access savers, plus perhaps a couple of current accounts like Nationwide FlexDirect and TSB Plus. But you may not want to have credit searches on your credit history, and current account applications do do searches.

Let's keep things in perspective: over 6 months, you can save £4,500. Even if you had that money all in one lump sum straight away, which you obviously have not but it makes the calculation easier, the absolute max interest you could make on that amount in that time is £88.25. More realistically, you will be lucky if you make £20. You might as well just put that money into a Marcus account, and may be open one TSB Plus account via Quidco, hoping they'll pay you the promised £50 cashback.(assuming you still qualify). I don't think you'd have to worry about 1 search.

bhjm

guineapigseatcheese wrote: »

Hi
I'm hoping to buy a house in the summer through shared ownership. While I'm living with my parents I'm able to save approximately £750 a month until then so I'm wondering where is best to do this - the regular savings accounts seem to have a max allowance of around £250 so not entirely sure the best place to save.
Anyone have any ideas?

Thank you

250£ per regular saver nothing stops your to have more a one bank account with banks, they offer regular saver

M&S Bank - 250?
HSBC - 250
First Direct - 300
etc

and open a LISA, if not already opened. if you have a HTB Isa- if you have not maxed out the annual contribution, think about to transfer your HTB to an LISA before end of tax year to maximize tax gain

YorkshireBoy

bhjm wrote: »

250£ per regular saver nothing stops your to have more a one bank account with banks, they offer regular saver

M&S Bank - 250?
HSBC - 250
First Direct - 300
etc

Can you get at this money 6 months in to a 12 month term...penalty free? (I know the answer...perhaps you don't?)

colsten

bhjm wrote: »

250£ per regular saver nothing stops your to have more a one bank account with banks, they offer regular saver

M&S Bank - 250?
HSBC - 250
First Direct - 300
etc

That would be 3 searches for the pre-req current accounts. Also, can you withdraw from these accounts, or close them, before maturity without penalties? I don't think you can. So it seems a rather bad idea to do these accounts for someone who wants the money 'in the summer' - which I read as 'sometimes in the next 6-7 months'

bhjm

colsten wrote: »

That would be 3 searches for the pre-req current accounts. Also, can you withdraw from these accounts, or close them, before maturity without penalties? I don't think you can. So it seems a rather bad idea to do these accounts for someone who wants the money 'in the summer' - which I read as 'sometimes in the next 6-7 months'

well, it was said "hopes" nothing guaranteed that the money IS needed - correct?

colsten

bhjm wrote: »

well, it was said "hopes" nothing guaranteed that the money IS needed - correct?

Being a glass-half-full person, I have assumed the OP's hopes will become reality. You, however, without saying so, appear to have assumed they would not. Either that, or you'd be happy for the OP to be landed with penalty charges, based on your recommendation. Not very MSE, I regret to have to say.

guineapigseatcheese

Thank you very much for the responses.

After I posted I had a thought of doing premium bonds as a DD each month plus have a small lump sum to put somewhere. Being the ever hopeful person I am I may get lucky! Even if I just win £25 in those 6 months then that's probably similar interest and maybe won't affect credit? No idea about credit searches to be honest. I was advised to get a credit card as that may help credit score but don't think it should be too bad as never been in debt. Anyway, waffling now.

Thanks again