I have H2B ISA, but should I get LISA?

Eddy.Geddy12 · 25 November 2019 at 10:55PM

Hello,

Not sure if I should be starting a new thread to replying to an existing one but yeah, here goes...

I currently have a H2B Isa with £6000 in earning 2.25% and an everyday savings account with £7000 in earning 0.2% interest?!

I was thinking about putting the 7k from the everyday savings account in a LISA (4k now and 3k in april).

So my question is, can I use both ISA's to get the 25% bonus when I come to buy my first home? Or would I need to put all the money from both H2B and Everyday Savings Account into the new LISA? If i was to do this, I wouldn't be able to keep the direct debit of £200 /month going into an ISA as I would have used up my £4000 /year allowance for 4 tax years!

I'm not sure if I should just leave everything as it is an keep up the £200/ month DD into my H2B ISA. Just want to make sure my money is in the right place!

Thanks in advance for any help.

eskbanker · 26 November 2019 at 1:28AM

Eddy.Geddy12 wrote: »

So my question is, can I use both ISA's to get the 25% bonus when I come to buy my first home?

The answer to this is no, it's one or the other.

In terms of which is best for you, it depends on a range of factors, including when you're likely to buy and how much you anticipate buying for. If you're buying within a year and for under £250K then a HTB ISA is likely to be best but otherwise look at LISAs as you can pay more into these....

Whichever one you plump for, make sure the rest of your money is in a decent savings account rather than one paying 0.2%!

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

I have H2B ISA, but should I get LISA?

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