ISA or LISA???

Ccalvo

Hi, I’m after some guidance on which help to buy investment to go for ISA or LISA to get the bonus
Here is my situation
I’m 34, have £10,000 in savings, never owned a home, currently rent with my partner, likely in the area that we live that we will be paying 250,000 upwards when we come to buy unless we buy a box room (but unlikely with a baby).
Initially I was thinking LISA as you can purchase up to 450000, however you are limited to £4000 deposit a year So what would I do with the rest until the next year?
Any advise welcomed
Thanks

eskbanker

Ignore HTB ISAs if you'll need to be buying above £250K, but it sounds like one LISA each is a good starting point to take care of £8K (unless partner already has one), which is more than you can pay into a HTB ISA anyway, and then put the rest wherever it'll get most interest:

https://www.moneysavingexpert.com/savings/which-saving-account/
https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

LISAs can only be used without penalties if you're buying in at least 12 months time, is that a problem for you?

Ccalvo

Thank you for your reply
No we won’t be buying in the next 12 months

sully1311

Ccalvo wrote: »

Thank you for your reply
No we won’t be buying in the next 12 months

As long as you don't mind locking your money away to avoid a penalty, a cash LISA is a no-brainer. If you trust your partner with your money, both you and them open LISAs before the end of the tax year and deposit 4K each. In April you can deposit the other 2K although I would keep my money in higher interest saving accounts until you are near the tax year deadlines.