short term saving 24 October 2004 at 1:19PM in Savings & investments 2 replies 803 views

sonny_3

Me and my wife are saving for the birth of our first child to cover buying baby things, pushchairs etc, and to cover for my wifes extended maternity leave. Obviously we need an account which is instant access, and pays the interest monthly as we probably won't have it open for a year. We are going to be saving 1000 to 1300 a month. Any ideas?

Reaper

The usual suggestion is a cash-ISA as it is tax free. I'm not up on the current best one, have a look at the MoneySupermarket ISA tables here. If you are both working you could both take one out.

They limit you to £3000 each so once you exceed that just go for an instant access building society account. Apparently Egg are offering 5.5% on their internet based savings account for 6 months.

deemy2004

Is your wife working ?

If not you can get interest gross, there are a number of high interest esaver accounts available. I.e. bradford & bingley pays 5.5%

If your both tax payers then the cash-isa's with a 3k limit each are good options i.e. lambeth pays 5.65% (45 days notice),though its not monthly interest.