Lifetime ISA

amy1695 · 23 February 2017 at 11:02AM

I have some money that I got left by a grandparent. It's £20,000. I currently rent from a housing association and am eligible for the right to buy scheme on my house. So, if I put £4,000 per year into the LISA, by the end, I should have £25,000 plus interest for a deposit. I'm doing a degree now so plan to get a mortgage in five years. So I have two questions.

1. Can I use the money from a LISA on a right to buy scheme?
2. Where should I put money that I want to save from my wages? I will take up the whole £4,000 per year limit on the LISA with my savings. I plan to save £50 per month for now. I want to put it somewhere that will earn me the most interest. I currently have it in a normal ISA with Barclays where the interest is 0.6%.

Dazed_and_confused · 23 February 2017 at 11:22AM

Tesco current account seems to be the popular suggestion at the moment for smallish sums, 3% last time I checked

Sean473 · 23 February 2017 at 1:30PM

Applications for the Tesco accounts are frozen... 2nd best option is bank of scotland vantage account..

Eco_Miser · 23 February 2017 at 11:28PM

The most interest would be the 5% available in Nationwide Flexdirect current account. Requires £1000 to be paid in each month, but you can withdraw it as needed. No direct debits required. Only lasts a year, but on current terms you can close/downgrade the account then, and get 5% again on re-opening after a further year.