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    • harshitguptaiitr
    • By harshitguptaiitr 7th Oct 17, 10:03 PM
    • 80Posts
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    harshitguptaiitr
    What is the best way to keep money for deposit?
    • #1
    • 7th Oct 17, 10:03 PM
    What is the best way to keep money for deposit? 7th Oct 17 at 10:03 PM
    Hello

    I would like to learn from experiences of other members in this forum regarding where do they keep money (saving accounts, ISA, stocks, others?) when saving for deposit on their first home?

    Thanks.
Page 1
    • LdnFtB
    • By LdnFtB 7th Oct 17, 10:24 PM
    • 66 Posts
    • 64 Thanks
    LdnFtB
    • #2
    • 7th Oct 17, 10:24 PM
    • #2
    • 7th Oct 17, 10:24 PM
    The primary factors in deciding any investment strategy - whether for saving for a house, retirement or otherwise - should be the timescale and your attitude to risk. How soon do you need the money and how screwed would you be if you lost it all?

    As a general rule, the longer it us until you need the money, the more risk you can afford to take with it.

    The advice is only to invest in the stock market if you have a timescale of longer than ten years as stocks and shares are risky. Their value fluctuates wildly and there is no insurance - you can loose everything if companies go bust. As a result that risk is rewarded with higher returns.

    If you need the money in the short term (i.e. within the next five years) then you should avoid risk and concentrate on preserving value. This means cash, either in savings accounts or a cash ISA of some sort. A Lifetime ISA might be a good choice as the government matches 25% of whatever contributions you make.
    • chappers
    • By chappers 8th Oct 17, 11:09 AM
    • 2,720 Posts
    • 1,541 Thanks
    chappers
    • #3
    • 8th Oct 17, 11:09 AM
    • #3
    • 8th Oct 17, 11:09 AM
    A Lifetime ISA might be a good choice as the government matches 25% of whatever contributions you make.
    Originally posted by LdnFtB
    Up to £4000 p.a. and will claw it back if you make withdraw money for purposes other than a first time house purchase or you are over 60
    • Hedgehog99
    • By Hedgehog99 8th Oct 17, 11:19 AM
    • 1,338 Posts
    • 2,778 Thanks
    Hedgehog99
    • #4
    • 8th Oct 17, 11:19 AM
    • #4
    • 8th Oct 17, 11:19 AM
    Whatever investment method you choose while saving, make sure that, when nearing the time you will need to pay your deposit, it's in an account with quick / electronic payment access, with no fees.

    Not with my deposit, but for my solicitor bills, I had clearly asked for enough notice of when payment was due to give me time to move funds, but they still sprang it on me as "we need this TODAY!" As it happened, the bank where I have my savings were able to do an instant electronic payment which I hadn't realised was possible from that type of account.
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