1k/pm, savings newbie.

rjsmse

Hi there,

I have been paying 1k/pm off debt for the past few years, and i'm now getting to a point where I'll soon be able to take this disposable monthly income and save it each month. I've never had any savings before ever, and have no idea where this money is best invested for a good return.

My goal is to save enough to buy my first house, so hoping to have ~25k saved within the next two years.

I cannot work out if maxing out a Lifetime ISA (£333/pm) and then putting the remainder into a regular savings account is best, or are there better things I can be looking at?

Any help or advice is welcome.
Thank you.

grumiofoundation

rjsmse said:

I cannot work out if maxing out a Lifetime ISA (£333/pm) and then putting the remainder into a regular savings account is best, or are there better things I can be looking at?

Seems like a good plan. Only thing to be careful of is some regular savers do not allow access before the end of the term (some do) so make you have enough cash to hand. Can get 2% on up to 1500(nationwide) and 1000 (virgin) in current accounts at the moment. 

An alternative is premium bonds - although with average luck you will make less than maxing out regular savers. 

colsten

rjsmse said:

I cannot work out if maxing out a Lifetime ISA (£333/pm)

You don't have a monthly LISA limit, just an annual one. So you can put in £4k straight away if you have, or if you are limited to £1k/mth, you can fill your 2020-21 LISA in 4 months.

Regular Saver accounts are a good idea for savings, with provisos grumiofoundation did point out; details here https://forums.moneysavingexpert.com/discussion/6106986/regular-savings-accounts-the-best-currently-available-list. Rates dropping at the rates of knots though.......

rjsmse

colsten said:

rjsmse said:

I cannot work out if maxing out a Lifetime ISA (£333/pm)

You don't have a monthly LISA limit, just an annual one. So you can put in £4k straight away if you have, or if you are limited to £1k/mth, you can fill your 2020-21 LISA in 4 months.

Oh great I hadn’t realised that. Thank you