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  • FIRST POST
    • Prenticebaines
    • By Prenticebaines 22nd Sep 19, 12:46 PM
    • 13Posts
    • 0Thanks
    Prenticebaines
    Help to Buy best after graduation?
    • #1
    • 22nd Sep 19, 12:46 PM
    Help to Buy best after graduation? 22nd Sep 19 at 12:46 PM
    Hey,


    Im just new to the MSE Forum,


    My question is after graduating is the Help to Buy the best account to get?


    I'm currently with Bank of Scotland and the interest rates across the board seem pitiful for newly graduating students even with the graduate accounts.


    I have made the decision to renew my NUS card before losing my official student status as well as UniDays and Prime.


    Is there anything else I should be thinking about at this stage?


    Cheers,


    Prentice
Page 1
    • grumiofoundation
    • By grumiofoundation 22nd Sep 19, 9:29 PM
    • 162 Posts
    • 143 Thanks
    grumiofoundation
    • #2
    • 22nd Sep 19, 9:29 PM
    • #2
    • 22nd Sep 19, 9:29 PM
    You only have until November 30th 2019 to open a help to buy isa.

    If you are interested in this account for saving to buy a property a lifetime isa is better for this (however you will pay a penalty if you have to withdraw the money so only put money in you will not need to access).

    https://www.moneysavingexpert.com/savings/lifetime-isas/

    In terms of savings easy access the highest interest rates are ~1.5% for easy access, ~2% for one year fixed (see mse pages).

    Better interest rates than the help t buy are currently available on regular savers. Can also get 5% for one year on up to 5000 in nationwide.

    https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/
    • grumiofoundation
    • By grumiofoundation 22nd Sep 19, 9:30 PM
    • 162 Posts
    • 143 Thanks
    grumiofoundation
    • #3
    • 22nd Sep 19, 9:30 PM
    • #3
    • 22nd Sep 19, 9:30 PM
    P. S. make sure you maximise employer pension contributions!
    • Prenticebaines
    • By Prenticebaines 23rd Sep 19, 12:35 AM
    • 13 Posts
    • 0 Thanks
    Prenticebaines
    • #4
    • 23rd Sep 19, 12:35 AM
    • #4
    • 23rd Sep 19, 12:35 AM
    Thanks! I will look at regular savers accounts and examine my pension when starting my new job : )
    • mimi.moolah
    • By mimi.moolah 5th Oct 19, 5:56 PM
    • 2 Posts
    • 2 Thanks
    mimi.moolah
    • #5
    • 5th Oct 19, 5:56 PM
    • #5
    • 5th Oct 19, 5:56 PM
    You only have until November 30th 2019 to open a help to buy isa.

    If you are interested in this account for saving to buy a property a lifetime isa is better for this (however you will pay a penalty if you have to withdraw the money so only put money in you will not need to access).
    Originally posted by grumiofoundation

    Why do you say that the lifetime ISA is better for this? When I read the article, the lifetime and help to buy ISAs seemed to come out at about the same if you used them wisely. Or should I reconsult the article, I may have missed something...(I am currently in the process of getting a help to buy ISA myself).
    • grumiofoundation
    • By grumiofoundation 7th Oct 19, 7:45 AM
    • 162 Posts
    • 143 Thanks
    grumiofoundation
    • #6
    • 7th Oct 19, 7:45 AM
    • #6
    • 7th Oct 19, 7:45 AM
    Why do you say that the lifetime ISA is better for this? When I read the article, the lifetime and help to buy ISAs seemed to come out at about the same if you used them wisely. Or should I reconsult the article, I may have missed something...(I am currently in the process of getting a help to buy ISA myself).
    Originally posted by mimi.moolah
    What I meant was if the money you are saving is going to be used for a house and realistically you arenít going to need to access that money for any other reason the LISA is a better bet (however if this is not the situation HTB may be better option for now, but can still open LISA with £1)
    - higher amount can be contributed to LISA, therefore higher bonus and practically no limit to LISA bonus whereas HTB limited to bonus of 3000
    - if buying outside London LISA can be used for property up to 450k whereas HTB only 250k (both 450k in London)

    Obviously the drawback of LISA is that you pay a penalty if withdraw for any other reason than property/retirement. Therefore if you might need access to the money it pay not be best option.

    Practically likely makes sense to probably open both (allowed to have and contribute to both, but can only use one towards house purchase) Open HTB and pay in maximum allowed and open LISA with just £1. Since you can withdraw penalty free from HTB can withdraw from HTB and contribute to LISA if this becomes the better option for you.
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