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Stocks and shares LISA or cash LISA?

6 replies 142 views
DeejhaDeejha Forumite
3 posts
First Post
MoneySaving Newbie
Hi,
I have my first grad job and have started saving for a house. 
I can save between £1000-£1200 per month so was thinking to split this between a savings account (undecided), the help to buy ISA, an innovative finance ISA (undecided) and a LISA. 

I'm currently undecided between the Moneybox cash LISA or the Unity Mutual stocks and shares LISA which seems to protect your money if the stock depreciates. I know nothing about investing so would really like some advice on which LISA is the best option. 

Thanks :smile:

Replies

  • MaxiRobriguezMaxiRobriguez Forumite
    854 posts
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    Your capital is at risk with stocks and shares, it isn't with cash.
    Cash LISA all the way as you'll probably be wanting to use the accumulated money within a year, maybe two max, by the looks of it.
  • eskbankereskbanker Forumite
    13.1K posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
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    Your capital is at risk with stocks and shares, it isn't with cash.
    Cash LISA all the way as you'll probably be wanting to use the accumulated money within a year, maybe two max, by the looks of it.
    Not sure where you derived the timescales from but if OP was wanting to buy within a year then no LISA is recommended!

    Also, unless OP has a HTB ISA already then it's too late to open one now....
  • masonicmasonic Forumite
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    Beware of investment products offered by Friendly Societies. In this case, the product pays the interest equivalent to a sub-standard fixed rate savings account, but doesn't pay out any return if the stockmarket underperforms. It's like having a cash savings account that may or may not pay out interest depending on some external factor.
    If you plan to buy within the next 5 years, just go for the best cash LISA.
  • DeejhaDeejha Forumite
    3 posts
    First Post
    MoneySaving Newbie
    Thanks for your replies, I should have clarified that I have a help to buy already, I opened it with a pound before they closed down. 

    I hope to buy in 3/4 years so I guess the cash LISA will be the best option. 
    Will I be allowed to pay into both the LISA and help to buy in the same tax year? As they will both be cash isa's? 

    Thanks again
  • eskbankereskbanker Forumite
    13.1K posts
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    Deejha said:
    Will I be allowed to pay into both the LISA and help to buy in the same tax year? As they will both be cash isa's? 
    Yes, you can pay into both concurrently because they're not both cash ISAs as far as ISA rules are concerned - HTB is a subset of cash ISA but cash LISA is a subset of Lifetime ISAs, a different category.
  • DeejhaDeejha Forumite
    3 posts
    First Post
    MoneySaving Newbie
    Thank you! 
    I've decided to go for the moneybox cash LISA.
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