Regular savers maturing after LISA deadline - what's best to do?
SamJ35
Posts: 63 Forumite
I have 2 regular savers:
400pm with Lloyds @ 2.5% (£3200 balance)
300pm with FD @ 5% (£2400 balance)
Both of these are maturing in May, as I opened them when I moved back home. Unfortunately I want to max out my LISA (4k) before the end of tax year and will likely need to use money from these to do so.
If I take money out before maturity I think I lose the interest - not sure if on the full amount or on the amount withdrawn. At current balances the interest across both accounts will be roughly £75. At maturity roughly £165 if kept in. But obviously the LISA 25% bonus outweighs this hugely.
What would be my best action here? Should I stop paying into these and save £2100 outside of these RS accounts so then I only need to take 1900 from the Lloyds (lower interest)? Seems a shame to lose the entire interest if I continued to save into them and take the money anyway.
Thanks
400pm with Lloyds @ 2.5% (£3200 balance)
300pm with FD @ 5% (£2400 balance)
Both of these are maturing in May, as I opened them when I moved back home. Unfortunately I want to max out my LISA (4k) before the end of tax year and will likely need to use money from these to do so.
If I take money out before maturity I think I lose the interest - not sure if on the full amount or on the amount withdrawn. At current balances the interest across both accounts will be roughly £75. At maturity roughly £165 if kept in. But obviously the LISA 25% bonus outweighs this hugely.
What would be my best action here? Should I stop paying into these and save £2100 outside of these RS accounts so then I only need to take 1900 from the Lloyds (lower interest)? Seems a shame to lose the entire interest if I continued to save into them and take the money anyway.
Thanks
0
Comments
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From a quick look at the summary box of the Lloyds account, there doesn't appear to be any reference to an interest penalty for early withdrawal (unlike FD's rate reduction) so you could keep paying in and withdraw £4K to your LISA in late March or early April, earning pro rata interest even if not paid until May. Check the actual Ts & Cs though....0
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I use the Lloyds one - it's an instant access account with no withdrawal penalty.0
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If I take money out before maturity I think I lose the interest
You seem to be recalling the FD terms and applying it to the Lloyds account.
https://www.lloydsbank.com/savings/club-lloyds-monthly-saver.asp
"You can make as many withdrawals as you like and there are no charges for doing so"0 -
Great thanks everyone. Much appreciated. Won't touch the FD due to the penalty but will withdraw the Lloyds money to pay into my LISA in March/April.0
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I can confirm you get interest at the full rate up to the date of closure.You seem to be recalling the FD terms and applying it to the Lloyds account.
https://www.lloydsbank.com/savings/club-lloyds-monthly-saver.asp
"You can make as many withdrawals as you like and there are no charges for doing so"
I have never kept mine to the end date (as invariably I have to manage the date the income gets paid for tax purposes) and always get the (apportioned) interest..0
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