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    • ethranes
    • By ethranes 2nd Dec 17, 11:58 AM
    • 29Posts
    • 5Thanks
    ethranes
    Where to put £30,000
    • #1
    • 2nd Dec 17, 11:58 AM
    Where to put £30,000 2nd Dec 17 at 11:58 AM
    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!
    Debenhams CLEAR||AMEX CLEAR||Barclay Card CLEAR||Halifax £1600
    Council Tax 15/16/17 CLEAR
    Updated: 30/6/2017
Page 1
    • eskbanker
    • By eskbanker 2nd Dec 17, 12:04 PM
    • 5,887 Posts
    • 5,844 Thanks
    eskbanker
    • #2
    • 2nd Dec 17, 12:04 PM
    • #2
    • 2nd Dec 17, 12:04 PM
    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....
    • ethranes
    • By ethranes 2nd Dec 17, 12:13 PM
    • 29 Posts
    • 5 Thanks
    ethranes
    • #3
    • 2nd Dec 17, 12:13 PM
    • #3
    • 2nd Dec 17, 12:13 PM
    @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 £1600
    Council Tax 15/16/17 CLEAR
    Updated: 30/6/2017
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