Does anyone use cashback and pay into a Help To Buy/Lifetime ISA

GenRent90

Hi there,

Just wondering if many people use cashback and pay it into a Help to Buy or Lifetime ISA?

If so, what is the best cashback and ISA account to use?

Thanks

eskbanker

Perhaps I'm missing the point of your question but as I see it there is no correlation between cashback and using HTB/LISA products - cashback on bank accounts (if that's what you're referring to?) is typically no more than few quid a month, whereas anyone serious about saving for a property (or anything else) would be expected to be looking at way more significant and substantial matters, even though every little helps and all that.

So, I'd split your enquiry into two entirely separate questions:

1. Is HTB or LISA better for my requirements?
2. If I'm looking to optimise my banking then what's the most productive way of doing this?

Q1 depends on a range of factors, but in general LISA is better if you're not buying for at least a year. Read up on them at https://www.moneysavingexpert.com/savings/lifetime-isas/, which includes a section comparing them with HTB, as well as highlighting best buys (not many to choose from).

For Q2, it may be that you'd profit more from interest and/or switching incentives rather than cashback as such, but check out all the main options at https://www.moneysavingexpert.com/banking/compare-best-bank-accounts/. Or if you perhaps meant cashback on credit cards, try https://www.moneysavingexpert.com/credit-cards/cashback-credit-cards/

Alexland

Perhaps you mean some bank accounts offer cashback on debit card transactions? If so then in the small print they will usually (or always) exclude these types of financial services transactions from the offer.

Or maybe you mean some of the Quidco, etc offers for the not-very-good OneFamily LISA, etc?

Or maybe you mean earning cashback generally and paying it into an ISA?

Alex

GenRent90

Hi Alex,

Yes, I mean in general. Do people use cashback, and then put it into a HTB/LISA to increase savings for their first home. If so, which services would people recommend?

Thanks

Paul_DNAP

You are probably better off thinking of the two issues separate
1) Cashback to increase income and/or reduce prices - there's a lot of chat about that in different areas of the site.
2) Once you have the reward/return/savings in hand, pop it in your ISA e.g. total up at the month end.


I am not sure there's a way to automate the link though, or have the sites pay direct to your ISA if that's what you were asking.

Alexland

If anything using cashback towards an ISA contribution is a waste of it's potential.

For example TopCashBack allow you to transfer the cashback into a reward wallet that allows you to buy discounted gift cards for retailers who sell everyday things you would buy anyway. As such you are better spending the cashback on gift cards for living expenses and putting the money you therefore avoid spending in an ISA.

Alex