Best way to save in order to pay off mortgage

Gareth77

Hi

I am fixed for the next 3 years at 1.27.

I have 70K in a bog standard Natwest savings (1.75%) and aim to add 1.5K to that each month.

What is the best alternative to this? Am I limited into what I can pay into an ISA?

Thanks!

Newbie_John

What salary you're on? If under £45k then you could save in any top saving account at 5.8% fixed for 2-3 years* and after paying tax you'll still be 5% up.
If above that than you can split into max ISA allowance £20k + Premium Bonds - they're tax free.

Just make sure interest is paid yearly rather than all at the end.

grumbler

Gareth77 said:

I have 70K in a bog standard Natwest savings (1.75%) and aim to add 1.5K to that each month.

Move as much as possible to top paying ISA(s). ATM you can get about 3.8% easy access or 5% fixed for 3 years, but rates can rise - it's for you to decide.
The rest - normal savings account(s) - ATM 4.2% easy access or up to 5.85% fixed.

What is the best alternative to this? 

The best for new funds - regular savings accounts (up to 7%), then ISA (new if fixed or top up if easy access) when regular savers mature. The best doesn't mean the easiest for 1.5K per month. But doable. Natwest's regular saver pays about 6%, but the monthly limit is just £150.