LISA plus HTB ISA or Regular Saver?

KatieLouise25

Hi everyone,

I've been researching into my options as I am just about to start saving for a mortgage. I've already discovered that a LISA sound the more suitable option for me but as I will be able to save more than the limit on the LISA I am unsure whether it would be best to put the remainder in a Help to Buy ISA or a high interest Regular Saver with 5% interest.

Any advice as to which would be best?
Thanks

Eco_Miser

Anything saved in an HTB ISA is deducted from your LISA allowance, and you can only use one or the other for buying a house.
5% is going to beat anything you don't get the government bonus on.

Neil_Jones

Remember the regular saver will only give you 5% on what's in the account and the accounts are restricted feeding wise, typically up to £300 a month. Many people feed them a couple of thousand over the year then get upset when they only get half of what they think they're going to get interest wise. Most current ones work out to on average £50 a year interest when they mature.

H2B is technically a regular saver too in an ISA wrapper but more open ended, with no end date set (technically they're available until 2019 with the bonus available until 2030 but after that is anybody's guess), but eventually you would get the current average of 2.2%ish percent on more and more of that money as you fill it by the maximum £2400 a year.

Eco_Miser

For someone who is actually saving out of income, Regular Savers should be expected to work as they do.

For someone with a lump sum, feeding a Regular Saver from a lower interest account is still going to give more interest in total than leaving it in the lower interest account.
As far as I know, there is only one account that will pay 5% on a lump sum, and that is restricted to £2500.