“Do not save what is left after spending, but spend what is left after saving.” W Buffet
At the end of each month, we share our monthly savings for buying our first home.
Our progress so far…
|Month||£s Saved This Month||Total Saved So Far||Family Reward|
| Starting Savings
This month we manage to save £605 which is our monthly savings target. We are grateful that we managed to save this amount.
Our Savings Account
We promised to share the savings accounts which we use to keep our savings for the house.
These days saving money is not paying too much interest. The interest rates for saving money are very low.
When we first started saving the money for the house we couldn’t find savings accounts with a better interest rate.
We end up settling with a fixed savings bond and a cash ISA with interest rate ranging from 1.5 to 2% AER
We were also interested in opening a Help To Buy ISA which had a very good yield for the money but after reading the small prints we changed our minds.
As you already know we are planning to buy our house using cash opening Help To Buy ISA wouldn’t help us as it is only used by people who want to buy a house for the first time using a mortgage.
Best Savings Account Paying 5% AER
This month our fixed rate bond which was fixed for a year matured.
And we were faced with the question which best savings account can we put our money.
We came across this Nationwide Flexclusive Regular Saver account which has a higher interest of 5% AEP. Here is a summary of the account.
1. The maximum pay-in is £50o per month which means that you can save up to £6,000 a year.
2. You can open it on the internet, mobile banking, or in a branch.
3. Withdrawals from the account are allowed and are unlimited
4. You can miss other months, but you can’t make up the amount in the following months as you are only allowed to make a maximum deposit of £500 per calendar month anything more will be rejected
5. To open this account you must have a current account with Nationwide a FlexPlus, FlexDirect, FlexStudent, FlexAccount or FlexOne, any one of these will do.
We have decided to open two of these accounts one for me one for my husband to maximize the good high-interest rates.
So we will pay in £12 000 in these two accounts and if the 5% interest rate stays the same throughout the year figures crossed, at the end of the year we will have at least over £300 interest.
The only down side of this account is that withdraws are unlimited. We prefer to lock away our money into account were accessing is a bit limited until it maturates.
But over the years we have learned how to have discipline toward our money as we are also building our emergency fund to stop us from digging into our savings account.
I will share more on how we are building our emergency fund in the months to come so stay tuned.
Over to you…
Do you prefer a savings account with limited withdrawals or unlimited?
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