3year savings account

sgc21

Hi looking for some advice and recommendations on  opening a savings account.
I have a 3 yr plan to pay off my mortgage which is fixed until 2028, currently making overpayments but can only make overpayments of 10% of the mortgage balance each year, any overpayments made above the 10% will incur a charge.
I plan to open a 3 year no access savings account where I can pay in each month to clear the mortgage balance when the fixed term ends in 2028 and possibly end up with a little bit I can reinvest.
I'm a novice when it comes to savings accounts best deals, however it would need to be an account that I can pay into each month and have no withdrawal access for 3 years with a decent interest rate.
Any recommendations or advice would be grateful.

Many thanks

wmb194

sgc21 said:

Hi looking for some advice and recommendations on  opening a savings account.
I have a 3 yr plan to pay off my mortgage which is fixed until 2028, currently making overpayments but can only make overpayments of 10% of the mortgage balance each year, any overpayments made above the 10% will incur a charge.
I plan to open a 3 year no access savings account where I can pay in each month to clear the mortgage balance when the fixed term ends in 2028 and possibly end up with a little bit I can reinvest.
I'm a novice when it comes to savings accounts best deals, however it would need to be an account that I can pay into each month and have no withdrawal access for 3 years with a decent interest rate.
Any recommendations or advice would be grateful.

Many thanks

Those accounts don't exist. You'd need to keep opening new no-access savings accounts - often known as fixed rate bonds - with the correct term as you go along. They'll have a funding window but after this you won't be able to add any more. 

If you really don't trust yourself not to withdraw the money would a e.g., 90 day notice account be enough of a disincentive? You'd be able to add to one of these.

https://moneyfactscompare.co.uk/savings-accounts/

Barkin

For regular monthly deposits, maybe look at regular savings accounts?

https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/

badger09

sgc21 said:

Hi looking for some advice and recommendations on  opening a savings account.
I have a 3 yr plan to pay off my mortgage which is fixed until 2028, currently making overpayments but can only make overpayments of 10% of the mortgage balance each year, any overpayments made above the 10% will incur a charge.
I plan to open a 3 year no access savings account where I can pay in each month to clear the mortgage balance when the fixed term ends in 2028 and possibly end up with a little bit I can reinvest.
I'm a novice when it comes to savings accounts best deals, however it would need to be an account that I can pay into each month and have no withdrawal access for 3 years with a decent interest rate.
Any recommendations or advice would be grateful.

Many thanks

I’m not aware of any such account as most fixed term fixed rate accounts allow only a short window to add money. 

Have you considered Regular Savers? They generally pay the highest interest but you can only pay in relatively small amounts eg £200 - £500 pm. Some providers require you to have a current  account but that’s fairly easily sorted. When they mature you could put proceeds in the highest fixed rate 1 or 3 year accounts as appropriate. 

Have a look at the Best Regular Savers thread. 

mebu60

Is the '3 year no access savings account' idea because you don't trust yourself to not use the cash for something else or because you perceive (incorrectly) that a longer term would have a better rate?

The product you seek does not exist. A regular saver might be worthwhile if you are only looking at £250 or so pcm. Otherwise I'd suggest opening a top paying easy access account. Feed the savings account for a year then move the capital + interest into a 2 year bond. Feed the (or another regular) savings account for another year then move that saved amount into a 1 year bond. Then feed it again for the final year. At the end of which you will also have the two bonds maturing. 

Albermarle

You can ( unusually) keep adding new money to a 3 year fix rate deal with Shawbrook bank throughout the term.
However the catch is that it only works with the Cash ISA three year fix, not the non ISA.
So you can not add more than £20k pa and if you do, you can not add anything to any other ISA's of any type that year,

Eco_Miser

Use as many Regular Savers (mostly from different institutions, but some institutions allow more than one RS at a time) as you need. They're usually the highest rate from the institution, and some don't allow any access before maturity.

Then as mebu60 and badger09 suggest, put the proceeds into 2-year, then 1 year fixed term