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Old 28-02-2012, 06:23 PM
ciaran1 ciaran1 is offline
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Default Saving for mortgage-rate optimisation

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.
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Old 28-02-2012, 08:58 PM
CiaranT CiaranT is offline
 
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Quote:
Originally Posted by ciaran1 View Post
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.

Quote:
Originally Posted by ciaran1 View Post
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.
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