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H2B ISA vs LISA
Davidnotmark
Posts: 24 Forumite
Hi Everyone,
I have a H2B ISA that's been open for 3 years or so (have sent the max £200 into it every month since it was open), but a friend recently mentioned I should have a LISA as the bonuses are bigger? I've read on another thread that you can have both open at the same time (and that I should open one maybe even today with as little as £1 as you will incur a penalty if you try and withdraw within a year). I don't plan on buying within a year, so should I transfer my H2B into a LISA or should I have both open? Presumably you can't use the benefits of both at the same time when you come to complete on your house?! I'm so confused!
I have a H2B ISA that's been open for 3 years or so (have sent the max £200 into it every month since it was open), but a friend recently mentioned I should have a LISA as the bonuses are bigger? I've read on another thread that you can have both open at the same time (and that I should open one maybe even today with as little as £1 as you will incur a penalty if you try and withdraw within a year). I don't plan on buying within a year, so should I transfer my H2B into a LISA or should I have both open? Presumably you can't use the benefits of both at the same time when you come to complete on your house?! I'm so confused!
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Read the guide here, which includes comparing H2B ISA vs LISA. https://www.moneysavingexpert.com/savings/lifetime-isas/If I remember correctly, if you’re at least one year away from buying you’re better of transferring it to a LISA. But it also depends on your circumstances and the price tag of your first home purchase."If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett
Save £12k in 2025 - #024 £1,450 / £15,000 (9%)0 -
If you've paid the max in for three years then your H2B would have somewhere between £7200 and £8400 (depending on whether you opened with the max £1200 deposit).Davidnotmark said:Hi Everyone,
I have a H2B ISA that's been open for 3 years or so (have sent the max £200 into it every month since it was open), but a friend recently mentioned I should have a LISA as the bonuses are bigger? I've read on another thread that you can have both open at the same time (and that I should open one maybe even today with as little as £1 as you will incur a penalty if you try and withdraw within a year). I don't plan on buying within a year, so should I transfer my H2B into a LISA or should I have both open? Presumably you can't use the benefits of both at the same time when you come to complete on your house?! I'm so confused!
The max LISA annual deposit you can make is £4k, so it would take you two years to transfer all your money over.
So it really depends on when you see yourself buying. If it's within two years, stick with H2B. If not, LISA is a no brainer.
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