zombeana Posts: 130 Forumite
13 July 2015 at 10:56AM edited 13 July 2015 at 11:06AM in
Where is the best place to put 2k per month, if I need to use it within 1 year (mortgage application aiming for March 2016)?
I currently have 9k in a 1% regular account.
Is a regular savings account my only option?
I've never had this amount of money to save before so am clueless.
Also - do banks look unfavorably upon you for a mortgage if you have several accounts with different banks? Looking at doing the current HSBC switch bonus but that would mean I held 2 current accounts as I would not want to close the one with my current bank as I have been with them 15+ years. Want to get the mortgage with them.
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jimjames Posts: 17,512
Forumite
13 July 2015 at 11:52AM
Simplest is Santander current account at 3% up to £20k. Best rate would be using TSB, Lloyds and Nationwide for smaller balances but more hassle arranging transfers etc.
Remember the saying: if it looks too good to be true it almost certainly is.
Archi_Bald Posts: 9,681
ForumitePlenty of 4 and 6% Regular Savers around, too.
SuperHan Posts: 2,269
Forumite13 July 2015 at 12:28PM
When I applied for my mortgage, I probably had upwards of 10 accounts over 4 or 5 institutions, including one with the mortgage provider which had been dormant for around 5 or 6 years prior.
So my experience is no, multiple accounts won't count against you.
zombeana Posts: 130 Forumite
13 July 2015 at 12:49PM
Thanks for the advice.
I am opening the Santander 3% and M+S 6% saver and will put the max £250 each month in there. Can I open more than 1 6% account and put the max into all of them each month and get 6% on all accounts?
Does the tax come off automatically?
Comping Since June 2016
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Forumite13 July 2015 at 1:15PM
For a Santander 123 account you need to deposit £500 pm and set up 2 DD's on the account. Basic rate income tax is deducted at source by default.
No free lunch, and no free laptop
TomJ Posts: 224
Forumite13 July 2015 at 1:33PM
First Direct and HSBC also offer regular savers at 6%. TSB offers 5% on the first 2 grand in a current account and a 5% regular saver. Nationwide offers 5% on the first 2 1/12 grand in a Flexdirect current account. Lloyds offers 4% on balances between 3 and 5 grand and a 4% resular saver.
I am not a financial advisor or other expert. All posts are purely my thoughts at the time for discussion, not advice. Bear in mind, even most of this disclaimer is ripped off another forum user. Please check out the facts first before doing anything.
zombeana Posts: 130 Forumite
13 July 2015 at 1:41PM
My plan:
HSBC account + savings account. Switch my current account to them for £120 cash + open the 6% regular saver then pay in £250 per month plus direct debits will switch +salary.
Also open a Santander 123 account, amend 2 direct debits to go from there and transfer the rest of my salary into this to get the 3% interest. Will also put the 9k I already have in here.
Sound right?
Comping Since June 2016
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Trunki, Cranberry snacks, Astonish cleaning hamper, Organix kids box, Abode tap, Cath Kidston tea set and cook book, £300 Sainsburys voucher, £152 Clarins hamper, Foot care gift set, Aromatherapy associates body balm, tickets to Winter Wonderland Nutcracker on ice.colsten Posts: 17,597
Forumite13 July 2015 at 3:38PM
zombeana wrote: »
My plan:
HSBC account + savings account. Switch my current account to them for £120 cash + open the 6% regular saver then pay in £250 per month plus direct debits will switch +salary.
The only HSBC savings accounts that are worth having are
- their Regular Saver, 6% AER if you are an Advance customer, else 4%
- their Loyalty ISA, but only if you are an Advance customer, as that enables you to benefit from their Save Together offer. Not worth it if you are not Advance.
All you need in that ISA is £300 as that pays you the max £10/mth for a year. Don't waste any other money in this (or another) ISA.
Search for the Regular Savings Account thread - it has the list of all the 4, 5 and 6% Regular Savings accounts.
Also consider switching a spare current account around all the places that pay for switching. If you don't have a spare one (or two), consider getting some. Don't request overdrafts to keep your available credit to a minimum.
Vortigern Posts: 3,234
Forumite13 July 2015 at 3:39PM
zombeana wrote: »
Where is the best place to put 2k per month, if I need to use it within 1 year (mortgage application aiming for March 2016)?
zombeana wrote: »
I am opening the Santander 3% and M+S 6% saver and will put the max £250 each month in there. Can I open more than 1 6% account and put the max into all of them each month and get 6% on all accounts?
Does the tax come off automatically?
If you need the cash within one year, the 6% regular savers are not suitable. If you withdraw within the year the interest rate will plummet. Look for regular savers that allow withdrawals. I think Lloyds, LeedsBS and TSB allow withdrawals during the year but check the terms and conditions to be sure.
If you start a regular saver now and it doesn't pay interest until maturity (after April 2016), no tax will be deducted by the bank.
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