Saving for mortgage-rate optimisation

[ciaran1]

Hi,

I am hoping an FTB hoping to purchase before end 2011 to take advantage of mortgage interest relief.
I am currently saving €600 p/m with PTSB Regular Saver at 3.35%. I can afford to save €1200 p/m and am looking for advice on best options-moving to get a higher rate seems advisable. I note that most of the Regular Saver a/cs have a limit of €1000.

Should I split the 1300 between 2 accounts? Or should I split between a lump sum deposit for money saved to date and a regular saver (7k lump sum saved to date)

Also, forgive my ignorance, but how does the application of the interst work e.g. if the rate of say 4% is applied in November, if I see the 'house of my dreams' in October, and decide to withdraw my sum saved for the deposit, do I get no interest at all?

Thanks in advance.

[CiaranT]

Originally Posted by ciaran1

Should I split the 1300 between 2 accounts? Or should I split between a lump sum deposit for money saved to date and a regular saver (7k lump sum saved to date)

How about:

• 7,000 EUR in Nationwide UK @ 3.00% @ instant access account.
• 1,000 EUR in the EBS Family Saver @ 4.1% @ monthly.
• 300 EUR in the PTSB Online Regular Saver @ 4% @ monthly.

Originally Posted by ciaran1

Also, forgive my ignorance, but how does the application of the interst work e.g. if the rate of say 4% is applied in November, if I see the 'house of my dreams' in October, and decide to withdraw my sum saved for the deposit, do I get no interest at all?.

You will get interest accrued to date in most cases.