Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • bhoy1976
    • By bhoy1976 11th Oct 17, 12:48 PM
    • 60Posts
    • 25Thanks
    bhoy1976
    ISA or regular savings account?
    • #1
    • 11th Oct 17, 12:48 PM
    ISA or regular savings account? 11th Oct 17 at 12:48 PM
    Hi all,

    I've just come from the House Buying, Renting and Selling forum - I was in the wrong place to ask the question and boy did I get some nasties.

    Anyway, on a lighter note I am here for your saving advice. I'll try to paint a picture of my circumstances.

    My wife and I would like to get on the housing market and realistically, Shared Ownership appears to be our best bet. I'm happy with this as it means paying part toward my own mortgage rather than all to someone elses.

    Also, we've got a family now and would like to set up for the future. Having gauged the market in our area and the monthly outgoings, we could manage to get a share in a property meaning that our current rent vs the mortgage + rent would be roughly the same.

    With the share prices valued at around £100K in the area we are looking at, our deposit would be around £5K. So we are aiming to save toward that plus out other expenses in as quick a time as possible.

    My wife is under 40 and I am over 40 so we have various restrictions on ISA's. My wife was looking more at the LISA and I was looking at the Help to Buy ISA.

    Although we would be buying a property that is more than the HTBISA criteria (£250K max) it does have a better interest rate than other ISA's from what I can see. My question is should I even bother with this ISA or just get a regular savings account instead?

    I wouldn't qualify for the government bonus so would only be doing it for the better insterest rate. My wife on the other hand would qualify for the LISA.

    Anyone have any other advice on saving for a mortgage deposit I am missing?

    Many Thanks
    Last edited by bhoy1976; 11-10-2017 at 12:54 PM.
Page 1
    • Eco Miser
    • By Eco Miser 11th Oct 17, 1:05 PM
    • 3,090 Posts
    • 2,856 Thanks
    Eco Miser
    • #2
    • 11th Oct 17, 1:05 PM
    • #2
    • 11th Oct 17, 1:05 PM
    If the property you buy will meet the conditions for a LISA, then the 25% bonus will swamp any interest considerations, so your wife should go for it.

    Since you won't get the HTB bonus, you should save in whichever account(s) pay the highest after tax income (and unless you're a high earner there will be no tax on the first £1000 of interest), which initially will be the Nationwide Flex Direct current account (5% AER) and the various 5% Regular Savers. See here for details.
    Eco Miser
    Saving money for well over half a century
    • bhoy1976
    • By bhoy1976 11th Oct 17, 3:37 PM
    • 60 Posts
    • 25 Thanks
    bhoy1976
    • #3
    • 11th Oct 17, 3:37 PM
    • #3
    • 11th Oct 17, 3:37 PM
    If the property you buy will meet the conditions for a LISA, then the 25% bonus will swamp any interest considerations, so your wife should go for it.

    Since you won't get the HTB bonus, you should save in whichever account(s) pay the highest after tax income (and unless you're a high earner there will be no tax on the first £1000 of interest), which initially will be the Nationwide Flex Direct current account (5% AER) and the various 5% Regular Savers. See here for details.
    Originally posted by Eco Miser
    Thank you.

    That is a great help.
    • patientperson
    • By patientperson 11th Oct 17, 5:49 PM
    • 430 Posts
    • 352 Thanks
    patientperson
    • #4
    • 11th Oct 17, 5:49 PM
    Savers Friend
    • #4
    • 11th Oct 17, 5:49 PM
    HTB ISA

    https://www.saversfriend.co.uk/charts/help-to-buy-ISA
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,931Posts Today

7,097Users online

Martin's Twitter
  • RT @LordsEconCom: On Tuesday Martin Lewis, Hannah Morrish & Shakira Martin gave evidence to the Cttee. Read the full transcript here: https?

  • Ta ta for now. Half term's starting, so I'm exchanging my MoneySavingExpert hat for one that says Daddy in big letters. See you in a week.

  • RT @thismorning: Can @MartinSLewis' deals save YOU cash? ???? https://t.co/igbHCwzeiN

  • Follow Martin