20 year old student seeking advice to invest from inheritance for mortgage

Charlotte_Stumpf

Hello 
My family set up savings account when I was born. It has know come to an end and I have a lump sum which I would like to secure/invest until I graduate (either in one year or two years). My initial thoughts are to seek a way I can save (tax-free) to go towards a deposit for mortgage (in 2/5 years)
.Would welcome advice 
Best Wishes 
Charlotte   

Albermarle

Sounds like a LISA is the way to go. If you get your skates on , you could open one today /tomorrow , so you can add £4K  before the end the tax year on April 5th and then afterwards add another £4K in the next tax year . That would mean a free £2K for the government .
https://www.moneysavingexpert.com/savings/lifetime-isas/
If you have more to invest than that , then either a fixed term savings account .
https://moneyfacts.co.uk/savings-accounts/
Or Premium Bonds 
Whatever you do , do not respond to any ads on Google or Facebook offering high interest bonds or similar . All scams.

eskbanker

Albermarle said:

That would mean a free £2K for the government

Unless they've radically redesigned the scheme on the quiet, it'll hopefully mean a free £2K from the government!

Charlotte_Stumpf

Hi
Thank you
Would welcome your advice as to which LISA to look into 
Best Wishes 
Charlotte

eskbanker

Charlotte_Stumpf said:

Would welcome your advice as to which LISA to look into 

If you're looking at buying within 2-5 years then stick to a cash one rather than a S&S one - the current best buys are shown in the MSE LISA article linked above.

Alexland

First thing to do would be to read the rules of the LISA scheme to determine if you are comfortable with the requirements around a qualifying property purchase (under £450k price, supported by a mortgage, etc) and conditions (min 12 months, withdrawal penalty, etc) then if it's likely to occur in the next 2-5 years then as above a Cash LISA would be most suitable (as you do not have enough time to sensibly take S&S investment risk) in which case if you want to make a contribution in the last few days of this tax year then don't worry about the interest rate find one who will take the contribution (eg the deadline for Moneybox has already passed) as you can always transfer it later.

Albermarle

Nottingham building society is often mentioned but please note >>

Open an account

You must successfully open an account and it should be funded by 4th April. As it's a bank holiday weekend, that means money moving from one account to another could take time – make sure you give yourself at least 24 hours for the funds to be applied onto the account.