£8,000 in current account want to make the most of it.

teamdamon

I moved recently from Scotland to England and I'm currently renting £550 fully furnished. I'm working a temporary Christmas job as I had no job from moving. I am also at university and receive £6000 loan and around £1800 bursary. Living with a partner and he earns £18,000 a year.

So, I have £8,000 savings and now I'm 22 years Old and am thinking about the future in terms of buying property. The reason I out the paragraph above is so you can see I can't put it all into a savings account as I have bills to pay. I was wondering what the best way of saving my money is... I looked at a Life time ISA but supposedly a high interest saving account is best first.

Of course I can't get a mortgage anytime soon without a stable job so I have a while to save and invest. I'm hoping to put £4,000 aside to make interest with and start ensuring the 25% bonus. Can anyone help in going about this?

xylophone

https://www.moneysavingexpert.com/savings/lifetime-ISAs

If you can open a Nationwide Flexdirect account you can get 5% interest on £2500 for a year provided that you pay in £1000 a month - this simply means cycling in/out as is most convenient to you.

You could then open the Flexclusive monthly saver - £250 a month at 5%.

Eco_Miser

teamdamon wrote: »

... I can't put it all into a savings account as I have bills to pay.

Many savings accounts allow easy access. Doing different things with parts of your money is normal and advisable. Save to cover this month's bills, next month's bills, upcoming purchases, your eventual house, your retirement, each in the way best suited to the time until you need that money, and any special offers for that kind of saving (such as LISA for house, pension for retirement, S&S ISA for early retirement, current account for bills).

teamdamon wrote: »

I was wondering what the best way of saving my money is... I looked at a Life time ISA but supposedly a high interest saving account is best first.

Emergency (expensive) access only to LISA except for buying first house or at age 60 - so no good for paying bills.
High interest current account very good for paying bills.

teamdamon wrote: »

Of course I can't get a mortgage anytime soon without a stable job so I have a while to save and invest. I'm hoping to put £4,000 aside to make interest with and start ensuring the 25% bonus. Can anyone help in going about this?

I believe that only Skipton BS offer a cash LISA, and that has a rubbish interest rate (but the 25% bonus is nice). Note that each subscription only gets one bonus, however long it it held for. Also note that you have to hold the LISA for at least one whole year (365/6 days) so opening the LISA now with the minimum amount is generally advised.

badger09

Eco_Miser wrote: »

Many savings accounts allow easy access. Doing different things with parts of your money is normal and advisable. Save to cover this month's bills, next month's bills, upcoming purchases, your eventual house, your retirement, each in the way best suited to the time until you need that money, and any special offers for that kind of saving (such as LISA for house, pension for retirement, S&S ISA for early retirement, current account for bills).

Emergency (expensive) access only to LISA except for buying first house or at age 60 - so no good for paying bills.
High interest current account very good for paying bills.

I believe that only Saffron BS offer a cash LISA, and that has a rubbish interest rate (but the 25% bonus is nice). Note that each subscription only gets one bonus, however long it it held for. Also note that you have to hold the LISA for at least one whole year (365/6 days) so opening the LISA now with the minimum amount is generally advised.

Eco Miser, I think you mean Skipton BS

PKaurK

Use bank account savings website for money you will need for monthly expenses. All you need to do is enter your savings and a couple is other questions and it gives you the best current account for you to maximise the interest.

I would suggest the money you intend to use for a deposit, put it into a cash LISA as soon as possible, make the most of the bonus, it's a fantastic scheme for those trying to get onto the property ladder.

Eco_Miser

badger09 wrote: »

Eco Miser, I think you mean Skipton BS

I think you're right.:o
I'll blame my age.
Fixed now.