Best way to save for a house deposit

Kk79

Hi folks! im looking for some help and advice.  My daugher is currently a student at University in Scotland. Family members have gifted her £7000 towards buying a house. She is looking to save £300/400 per month for the next 2 years when she intends to buy.  
1) will this affect her student finance etc?
2) where is the best place for her to put this lump sum? and monthly savings?
3) is there any schemes that she could avail of when she does buy?

many thanks in advance

eskbanker

1. No.
2. https://www.moneysavingexpert.com/savings/lifetime-isas/ - only £4K per tax year but if she's quick she can get one opened and funded by Thursday, leaving another £4K contribution allowance for 2021/22
3. https://www.ownyourhome.gov.uk/schemes-all/

Thrugelmir

Cash LISA will provide a useful boost. Though time is short. 

Kk79

thank you for your help.
who is the best provider to go with? I think she can put in 4k now and 4k after 6th april. then save and put in 4k the year later.
would she be best with a cash isa or stocks/shares?
thanks

grumiofoundation

Kk79 said:

thank you for your help.
who is the best provider to go with? I think she can put in 4k now and 4k after 6th april. then save and put in 4k the year later.
would she be best with a cash isa or stocks/shares?
thanks

If she is looking to buy in 2 years -> Cash is much more sensible. 

if she hasn’t opened already and wants to contribute this year it is getting quite close to the end of the tax year so should do ASAP. Check with the providers (should be available to see online) for when they will accept contributions to count towards this years allowance (e.g. Moneybox is 31st March). 

Kk79

it will probably be more 3-4 years but is saving for the next 2 years at least.
who is the best provider for a lifetime ISA at the minute?

Albermarle

Most well known providers with deadlines  Moneybox	Midday, Wednesday 31 March
Paragon Bank	Midday, Thursday 1 April
Nottingham Building Society	3.30pm, Thursday 1 April
Newcastle Building Society	4pm, Thursday 1 April
Skipton Building Society	4pm, Thursday 1 April

Amateurretiree

My son just opened one with Newcastle Building society. The application has taken 3 or 4 days as he had to wait for a link by e mail then a password ( which I think came by post though not sure) so she really does need to do it literally now and get the money in straight away.

Kk79

I set her up a moneybox account. It seemed really straight forward. Just personal details and national insurance number. I chose to add 4k as a lump sum. It states it will come out her account on Wednesday. It was all really easy. 

Is this correct for anyone who has this app/account?

Alexland

Kk79 said:

I set her up a moneybox account. It seemed really straight forward. Just personal details and national insurance number. I chose to add 4k as a lump sum. It states it will come out her account on Wednesday. It was all really easy.

Is this correct for anyone who has this app/account?

Well it doesn't sound correct that you set it up for her (it should have been her as an adult now) but yes "Our final collection (money added to a ISA or Lifetime ISA) for this tax year is midday 31st March" so she needs to ensure she has enough money in her account for Wednesday to avoid going overdrawn.

https://www.moneyboxapp.com/end-of-the-2020-21-tax-year-what-do-i-need-to-know/

"Around midday on Wednesday 31st March we’ll begin to collect the amount shown in your green circle on your This Week tab, with the money leaving your bank account a few days later. The Easter holiday period also falls around this year’s EOTY and so, due to the bank holidays, your money will likely leave your bank account on 7th April – but don’t worry, if it was collected from your green circle on Wednesday 31st March, it still counts towards the 2020-21 tax year."

Kk79

What I meant was I went through it with her to set it up.