First Time Saver!

Hi all,

Need advice on starting a saving scheme. I estimate that i can save 1600 per month. What i have started doing is to save 200 in a credit union (for a rainy day) and 200 in a parish savings scheme (for xmas), that leaves me with 1200 per month to prove to the bank that i am in a position to get a mortgage. I have about 2500 to get me started. Am i doing the right thing in splitting up my savings or should i just save the whole lot with the bank?? Also what type of bank savings plan should i go for? I am in no hurry to withdraw but would also like the option if needs be. Any advice appreciated, not very good on the financial side of things.

Hanks.

Don't go to the Credit Union for savings - the rate you will get is very low.

I suggest that you ...
1) Open an Anglo Irish Regular saver account at 7.30% and deposit 1,000 EUR monthly into the account.
2) Open an On Demand account with Northern Rock at 5.00% and put your current savings and the rest that you can save monthly into the account.

I am in the same boat so thanks for the advise.

With the Northern Rock account you have to choose annual or monthly interest - the annual is a better rate so I would naturally select that one? However the choice has thrown me!! Is there a benefit to the monthly?

No benefit in the monthly. Basically you are getting less for the convenience of getting your interest monthly i.e. you are paying for the service. If you can manage without getting the interest monthly then don't opt for it - go for the better annual rate. Remember by opting for the annual rate you can still draw money whenever you need it without penalty.