Help! Looking at the best way to save!

RachelJ1406 · 18 June 2018 at 4:10PM

Any advice would be greatly appreciated.
I'm looking to open up either an ISA or a LISA.
Was wondering where would be best to start? (I've been told that it's best to go highest interest over the shortest amount of time) I would like it to be locked for between 3-5 years and I was wondering if anyone had advice regarding research or any recommendations?

Any advice would be greatly received,
from
-A Damsel in Distress! :money:

binaryuniverse · 18 June 2018 at 4:35PM

The best way to save is to not spend your money. Interest is merely the sprinkling on the top.

At present, the best places to put your money is in current accounts. Both Nationwide (on balances up to £2500, for 12 months) and TSB (balances up to £1500) are giving 5%, at present. Tesco is offering 3% (balances up to £3000, until April 2019. Not sure after that). Even the highest paying, lock in, savings accounts don't match those.

Those are the top paying accounts, but you will need to meet the requirements (minimum pay in per month, certain number of direct debits, logging in to internet banking, etc).

If you are looking to buy your first home, then a LISA is a good way to bulk up your funds. However, it's advised you keep your money in a interest paying current account, then transferring it to your LISA before the tax year ends, to maximise interest.

kidmugsy · 18 June 2018 at 11:07PM

Once you've opened your Nationwide FlexDirect account you could also open their Regular Saver: it pays 5% on, ahem, regular savings.

Help! Looking at the best way to save!

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