Advice on Moving H2B ISA to LISA

Lexo

Hello,

I have made a post about this a while ago but due to some issues arising and not being on top of it, I never actioned the advice that was given and looking to see if the advice would be similar or if any other suggestions.

I am looking for some advice on what the best situation would be to start saving up for a house deposit with my partner. I registered for a H2B a while back but have not contributed or used it to its full potential which I do regret and it currently only has £600.00 sitting in it which doesn't qualify for any bonuses or really makes a big difference at all. My partner also has a H2B but this was just to open the account before they ended so also has minimal funds (£200.00). After my monthly outgoings and spending, I am usually left with around £500-£600 that I can save each month which currently just goes into my savings account which is sitting around £3000.00 at the moment which I am rebuilding over last 2 months after some unexpected costs.

I have looked into the new LISA which is offered from MoneyBox and this seems to be a better option for me based of the amount I can save each month and the fact that my H2B only has £600.00 in it so it would be best to move over. I am looking for some advice from someone that understands both accounts in good detail and based of my situation above, would be able to give me some good advice? From my understanding, I can put up to £4000 per year into the LISA at any point so I could always keep putting the £500 a month into my savings (£500x12 = £6000) and then move across £4000 at the end of that year which gives me a nice blanket for any expected costs and if I cant put in £4000, I can simply put in what I am happy to have without. This method only works based of the fact I can consistently save £500 a month which I can due to my job security and my spending's not changing much. Would this also be the better path for my partner to go due to little amount within the H2B even if they didn't reach the £4000 that can be put in per year?

In terms of the new LISA, I believe MSE recommends MoneyBox as the top provider but not 100% sure on the differences between other providers on reliability, safe etc so any input would be helpful on this as well.

Kind Regards

RacingDriver

A LISA has to be open for 1 year before it can be used towards a property purchase.  Therefore depending on when you are planning to buy, you may consider opening with £1 now and then topping up at a later date to get the clock ticking.

You can add up to £4,000 per financial year (6th April to 5th April following year) and will get a 25% government bonus.  So if you are saving over the Help to Buy monthly amount the LISA gives you access to a larger potential bonus.

The LISA can be used for a property up to £450,000 vs £250,000 for the Help to Buy ISA, which could be important depending on how much the properties you are looking at cost.

Moneybox has the best rate for a LISA at the moment at 0.85% (dropping after first year).  It is app only so this may or may not work for you.