Savings advice

sgc21

Hi, looking for some advice on a regular savings account.
So I have been paying additional overpayments on my mortgage (currently at a balance of 57,317k) and I'm on a fixed rate so can only pay 10% of the balance at the start of each year which for this current year im going to hit the 10% limit in may.
From then onwards I plan to save into a regular savings account, the monthly amount will be around £1,100 a month.
Then in January 26 I will use part of the savings balance to pay the 10% overpayment from my mortgage in a lump sum and start topping up the savings account again in Feb 26 and so on until I have enough to pay off my mortgage which I currently estimate will be around early 2028.
Currently paying 4.5% interest on my mortgage which is fixed until April 2028 so keen to get it paid off.
Just looking for some advice and suggestions on some good interest saving accounts, I won't be making any withdrawals other than once a year in January when I intend to pay off the 10% of the mortgage balance.
No knowledge of what savings accounts would be best suited or what my options are and any advice would be appreciated.
Thanks

Sarahspangles

sgc21 said:

Hi, looking for some advice on a regular savings account.
So I have been paying additional overpayments on my mortgage (currently at a balance of 57,317k) and I'm on a fixed rate so can only pay 10% of the balance at the start of each year which for this current year im going to hit the 10% limit in may.
From then onwards I plan to save into a regular savings account, the monthly amount will be around £1,100 a month.
Then in January 26 I will use part of the savings balance to pay the 10% overpayment from my mortgage in a lump sum and start topping up the savings account again in Feb 26 and so on until I have enough to pay off my mortgage which I currently estimate will be around early 2028.
Currently paying 4.5% interest on my mortgage which is fixed until April 2028 so keen to get it paid off.
Just looking for some advice and suggestions on some good interest saving accounts, I won't be making any withdrawals other than once a year in January when I intend to pay off the 10% of the mortgage balance.
No knowledge of what savings accounts would be best suited or what my options are and any advice would be appreciated.
Thanks

To save £1,100 a month you will probably need multiple regular savers, there aren’t many that accept more than £250 a month, and some less than that. What’s on offer changes all the time. Each time one of ours matures we work down the list in one of the threads here and pick the one with highest interest available that we don’t already have. You will need to avoid annual ones that require you to be invested for a full 12 months if you need the money in January. Xmas savers typically launch January to March and can be accessed from November. This year’s may be withdrawn by the time you start looking in May, they might be useful next year though.

Before you start, check if banks/building societies you already have a relationship with are offering you a loyalty saver as some of those have decent (maybe even fixed) rates. Also, look out for accounts paying decent rates that are called ‘single access’ or ‘rainy day’. 

Bridlington1

What's your income and how much do you have in savings already?

For a list of the top regular savers the following thread may be of use:
https://forums.moneysavingexpert.com/discussion/6576962/the-top-regular-savers-discussion-thread/p1

The first page gets updated daily when new accounts are launched/withdrawn, it also has some links to other useful threads and sites. If you've any queries about regular savers then feel free to ask in the above thread.

Generally though I'd say just work your way down the accounts on the first page of the main Regular Savers Thread, ignoring any that wouldn't be suitable for you, e.g. First Direct at 7% doesn't allow withdrawals or penalty free closure before the end of its 12 month term so wouldn't be of much use to you if you need the money in January but the Co-op regular saver at 7% allows you to withdraw your money without penalty at any point before the end of its term.

piker57

What you can also do which I think would help you, is to look at the excellent thread Bridlington1 has highlighted (he does a fantastic job updating it) & open a number of the highest interest accounts now. Many allow you to make minimal payments which you can do until May when you can substantially increase the deposits to the maximum each account allows. 

I make the recommendation to open the Regular Savers now, because not only will it mean you have earlier maturity dates, it means you don't risk losing out on the present highest fixed interest rate accounts if providers withdraw them to reflect the current trend for rate cuts.

In some cases you need a linked bank account, Bridlington1's thread makes it clear which ones fall into that category. If you look at First Direct you can even get £175 for switching another account to their 1st Current Account, there are lots of threads on here with recommended easy to open accounts that you can set up specifically to create the account to switch, without needing to switch your currently used bank account.

Cisco001

Have you utilize cash isa?