Maxed out my lifetime ISA

AlexLever17

I'm currently saving to buy a house on my own. I've maxed out my Lifetime Isa for this tax year. I won't be able to place a deposit down on a house until 12 months' time, so I won't be able to add to it for the next 5 months or so. Does anyone have any recommendations for where I should put this money in the meantime? I should have about £450/month that I can save so it'll be great to earn a bit of interest on it until my lifetime isa opens up again in the new tax year. 

MrFrugalFever

I keep maxing out the LISA too, the excess I have been putting in to highest accounts I can find. I’ve got ZOPA for some and Sainsburys defined access issue 33 at 2.75% for some (max 3 withdrawals). £4k in to that ready for April next year.

Band7

Barclays Rainy Day Saver any good for you? And/or Club Lloyds Regular Saver?

snae

If you have a lump sum, a fixed rate bond might be worth a shout. You could re-save the original amount plus the interest when it ends, meaning that if you can find a similar rate you effectively have compounded interest!

First £1000 of non-ISA interest is tax free. it's £13570 if you're not working!

cricidmuslibale

snae said:

If you have a lump sum, a fixed rate bond might be worth a shout. You could re-save the original amount plus the interest when it ends, meaning that if you can find a similar rate you effectively have compounded interest!

First £1000 of non-ISA interest is tax free. it's £13570 if you're not working!

It's actually £18570 if you're not working - you forgot about the £5000 starter rate for savings - but otherwise I almost entirely agree with your post above. Just one important thing to note though:- Both the £5k starter rate for savings and the £1k personal savings allowance are not, strictly speaking, tax free like money deposited into an ISA but rather taxable at 0%.

Bridlington1

Regular savers are your friend here. I would look at the Natwest and RBS regular savers as well as the club Lloyds regular saver as already mentioned.

I would also look at opening the Bath BS Homestart Regular saver and depositing a minimal amount each month. I know it's only paying 2.55% at the moment, but it is the only account that you can open if you aren't an existing customer or live, work or study in Bath. It will also allow you to access their other products in a year's time, including their 16-25 regular saver (depending on age), which will beat even the club Lloyds monthly saver. It's always handy to have a "foothold" in many building societies in case they launch a high rate loyalty savings account.

Albermarle

Savings accounts: 2.5% easy access or up to 5.05% fixed (moneysavingexpert.com)

AlexLever17

Band7 said:

Barclays Rainy Day Saver any good for you? And/or Club Lloyds Regular Saver?

Yep, I've got a Lloyds account but I'm not a club Lloyds member so I think I'd have to apply for that first. I've noticed that it says the interest is only paid after 12 months, so I assume I'd have to leave the money in there for 12 months in order to get the interest? https://www.lloydsbank.com/savings/club-lloyds-monthly-saver.html

MX5huggy

No you can make withdrawals when you like, you’ll receive the interest for the money you had in the account:-

Yes. You can make as many withdrawals as you like and there are no charges for doing so. You can transfer money out of the account online, but only to another Lloyds Bank account.

Bear in mind you may not be able to replace what you withdraw. This is because of the monthly deposit limits.

After 12 months the account will change to a Standard Saver. Before this happens, we'll contact you to explain your options and next steps.

Bridlington1

AlexLever17 said:

Band7 said:

Barclays Rainy Day Saver any good for you? And/or Club Lloyds Regular Saver?

Yep, I've got a Lloyds account but I'm not a club Lloyds member so I think I'd have to apply for that first. I've noticed that it says the interest is only paid after 12 months, so I assume I'd have to leave the money in there for 12 months in order to get the interest? https://www.lloydsbank.com/savings/club-lloyds-monthly-saver.html

With the club Lloyds current account they charge a £3 monthly fee, unless you pay in £1.5k/mth (it doesn't have to stay there) so you may want to open a current/savings account elsewhere if you haven't already to be able to meet the monthly funding requirements. You'll also be able to get a £50 interest free overdraft, so you could put that in the monthly saver to get a bit of extra interest. I know it's only an extra couple of quid but it all adds up.