I’m trying to save some money over the next five years to afford the deposit for a house - so I’m looking for some help choosing a savings account.
About a year and a half ago I started saving with a Leeds Building Society Regular Saver (Issue 2). The terms stated that each month I had to pay in between £50 and £500, and that each year I allowed one withdrawal. If I kept to these terms I’d get 3% bonus interest over that of the Bank of England base rate.
That’s been chugging along quite happily, with my payments going into it automatically each month (out of sight, out of mind).
A couple of weeks ago, however, I got a letter from Leeds telling me that my account type was no longer on offer, and that I had a choice to make before the end of Feb: I could opt for the lump sum to be put into a bond (advertised at some percentage rate that I don’t remember) but it would be locked in it for 5 years, or I could do nothing, at which point it’ll automatically turn into a low interest, instant access, savings account.
I’ve also got the option of starting a new Regular Savers account (issue 3), with similar terms to that listed above (except now the range is £25 - £250 each month), but it would have to be a fresh account, starting from a zero balance.
So now, I’m not sure what I should do next. I have a lump sum of money (not a huge amount, but enough) that I want to put away and not touch, and I want to continue saving each month. I’m not against the idea of starting another Regular Saver account with Leeds (unless someone can recommend another bank who offers something similar/better?), but I don’t know what I should do with the lump sum that I’ve got.
Can anyone point me in the right direction on what sort of options I have available to me please?