Savings accounts

[DoraMilaje]

I've recent got myself virtually debt free after years of being crap with money. I'd now like to start saving for a house deposit as well as a general rainy day fund but I've never had a proper savings account, only a current account. Which is the best type of savings account to open? Should I have a separate savings account for rainy day fund from where I'd like to save for a deposit?

Any advise would be greatly appreciated

Do you already own a property? If not open s help to buy isa as you get it topped up from the government with your tax back on what you deposit.

No I don't own a property at the moment, I'd be saving towards my first house. Does that make a difference to weather to go for an isa or not?

Whether*!

Sorry I'm not with it this morning! I've just read your post properly, thank you for that. I'm going to look into opening an isa, I've heard of them before but I've never fully understood how they work.

Money saving expert is a good place to start OP.

Just in case my post wasn't that clear - Money Saving Expert is a website!

Thank you! I've used Resolver from Money saving expert before so I'm fairly familiar with the site but I wasn't ware that they had advice about savings on there. I'll take a look

Help to buy ISA gives a very good return when you buy a house.
Open a regular saver, they offer 5% interest, First Direct lets you save £300 a month, Nationwide £250.
HTH

Sorry OP just saw your replies. If you’re sure this is what you’ll buy then the HTB isa is fab - not sure if you can withdraw to spend on other things though. If you can you then don’t get the top up. Def worth looking into though.

Funny you post about nothing but plum Starla

do not use the kiddy apps for savings - at best no interest, at worst money at risk. Anyone posting recommending them is after the referral bonus. That tells you a lot about their business model...

remember those monthly savers don't really pay that much, because the money builds up slowly the actual rate of return is much lower. If you are dripfeeding money in they are fine.

there are no savings accounts that pay anywhere near the rate of inflation, let alone above it.

I'd now like to start saving for a house deposit
As others have said, look at a LISA or HTBISA. Money Saving Expert website has a good table showing the differences between these accounts. Interest can be quite low so it's qualifying for the bonus which you are really interested in. There are age restrictions and restrictions on how much can be saved.

a general rainy day fund
Interest paying bank/building society accounts which allow instant access, many have a debit card.

Inflation is a real killer to your savings, so having an emergency fund is certainly vital but consider it to be insurance against you ever using debt again, not something you will make much interest on. Maximise the interest you can get but don't expect to get that much.

What kiddy apps?

so having an emergency fund is certainly vital but consider it to be insurance against you ever using debt again

This is exactly why I want one. Wasn’t even thinking about interest, just want to have money put aside for emergencies etc

While the interest rates on savings are so crap, we keep our savings in Premium Bonds - once you build up a chunk you win quite regularly and the average return is better than bank interest rates

Help to buy isa is the way to go.