To Lifetime ISA or not?

1Foz

Hey Guys,

So, last couple years i'll have put the max allowance into a LISA. both the years so far I've planned it to have the £4,000 stashed in a 1 year fixed til March time, before moving it over to the LISA then at the end of the financial year, just cos it was more worthwhile to do that - albeit a matter of not too many pounds in interest.

However, its likely I will be looking to 'make the move' in the next 1 - 2 years. So, I was thinking that it might be a good idea that once I put the £4,000 over in march for 18-19's allowance, then as soon as April 6th comes along, chuck next years allowance straight in. I know this will technically lose me a small amount of interest over the year given that Skipton pays a paltry 1%, however, I'm kinda thinking also that should something come up and I need to move fast, I can't imagine a lender being particularly chuffed if I ask them to hang on a few weeks while I wait for the 'free' £1,000 bonus to clear. As far as I see, the bonus gets paid the following month (it wasn't like that in the first year of LISA's but it was changed?).

So, rather than split hairs over a few quid of lost interest in the 2019-20 financial year, I suppose it would be better to just get the money straight in there so that the bonus is there. I mean, I could probably leave it as I am not necessarily expecting things to happen so soon...but by the end of this year I believe its a distinct possibility. Though, if i'm wrong and the bonus won't get paid until a year passes then I guess i'd be best off sticking it in a 1 year fixed anyway and if anything does happen I guess i would not be getting that bonus for next year if a full year has to pass before it goes in and I happened to want to move before then.

Cheers!

Zorillo

Yes, in your shoes I'd put 'next' years contribution in as early as possible and forgo the few pounds of interest you might otherwise earn on it. The bonus is paid within 4-6 weeks of the deposit.

Good luck with the house hunt.