Stocks and shares LISA or cash LISA?

Deejha

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

MaxiRobriguez

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.

eskbanker

MaxiRobriguez said:

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....

masonic

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.

Deejha

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

eskbanker

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.

Deejha

Thank you! 
I've decided to go for the moneybox cash LISA.