Which saving account should I go for?

Fuzzythinking

Dear Sir or madam

With regard to credit crunch, I decide to save from £500 to £1000 monthly in order to achieve about £50k after 5 years. The trouble is I am not sure which saving account would be suitable for my needs. I was thinking of using ISA but only accept up to £3500 per year. The reason of doing this is that I want to be morgtage free after five years.

Please advise me on saving account

Regards

Fuzzythinking

Meltdown_2

Which tax band are you in?
You can save up to £3600 in a cash ISA, but there is another £3600 you could save in a stocks & shares ISA.
If you have a partner, they could save the same in ISAs.

talana

The reason of doing this is that I want to be morgtage free after five years.

If this is your aim, have you investigated direct lump-sum overpayments?
Will depend on which mortgage product you have of course whether you can do so.

Depending how the mortgage interest rate compares to a cash ISA rate (pretty close usually), this would possibly be the next best thing to do after filling the cash ISA.
I'd still take the ISA option first though, always good to have some emergency savings.

Fuzzythinking

Dear Sir

Yes, I have thought about overpayment but they will charge me for it and it is quite lot of money. My five fixed rate morgtage will expire on 31st Dec 2011 so that I can pay them off on 2nd 2012 which will be a fantastic achievement. So I prefer to save up and pay them in one go. Which saving account should I go for?

FT