Where to put £30,000
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ethranes
Posts: 69 Forumite
Hi, my wife and I will be getting £30,00 to put toward our first mortgage soon, I am wondering how best to divide this money between ISA's and such for the best returns. This is currently what I have in mind.
1. Open a help 2 buy ISA for both my wife and I, put in the maximum for this month, and feed the £200 per month into our help 2 buy ISAs.
2. Open 2 LISA's and put in the maximum £4000 in each account, and when April comes around we can put a further £4000 in each account.
3. Open a third standard savings account which allows free withdrawls, to hold the remainer of the savings, until I'm able to syphon the money out of there and into the above ISAs.
Sounds simple to me but there are a few things I'm wondering about. It takes about 5 years before the help 2 buy isa will reach it's largest, and I can only use money for a house with a LISA once it's been open for over a year. But I think that even if I want to take the LISA money out before a year, there is no fee, is that right?
Can anyone offer any other help or advice, thanks!
1. Open a help 2 buy ISA for both my wife and I, put in the maximum for this month, and feed the £200 per month into our help 2 buy ISAs.
2. Open 2 LISA's and put in the maximum £4000 in each account, and when April comes around we can put a further £4000 in each account.
3. Open a third standard savings account which allows free withdrawls, to hold the remainer of the savings, until I'm able to syphon the money out of there and into the above ISAs.
Sounds simple to me but there are a few things I'm wondering about. It takes about 5 years before the help 2 buy isa will reach it's largest, and I can only use money for a house with a LISA once it's been open for over a year. But I think that even if I want to take the LISA money out before a year, there is no fee, is that right?
Can anyone offer any other help or advice, thanks!
Debenhams CLEAR||AMEX CLEAR||Barclay Card CLEAR||Halifax CLEAR
Council Tax 15/16/17 CLEAR
Council Tax 15/16/17 CLEAR
Updated: 30/6/2017
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Comments
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You can't get the 25% bonus (for a first-time property purchase) on both a HTB ISA and a LISA, so if you open both then you'd only be using the HTB for its interest rather than the bonus.
Using a LISA within a year is possible but pointless (low interest and no bonus), so if you're likely to buy within a year then you might be better to use the HTB instead.
Other options include regular saver accounts and/or current accounts, which pay better interest than traditional savings accounts, see https://www.moneysavingexpert.com/savings/which-saving-account for further details....0 -
@eskbanker thanks for that, I forgot that you couldn't use them both. I'd like to think that I'll be able to buy within a year, so maybe just opening the HTB accounts for us both and keeping the rest in a decent interest savings account may be the best option.Debenhams CLEAR||AMEX CLEAR||Barclay Card CLEAR||Halifax CLEAR
Council Tax 15/16/17 CLEAR
Updated: 30/6/2017
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