What saving account?

Olly98 · 6 March 2018 at 1:45PM

So I’m a student starting placement in July and plan to save a large majority of my pay during the 12 months.

However I’m unsure on the best way to save, my original plan was to open a Help to Buy ISA, however with the maximum monthly limit being £200 and looking at saving more than that on a monthly basis and so I’m unsure the best way to go about saving. Anyone got any advice?

Thanks

eskbanker · 6 March 2018 at 2:09PM

If you're saving with a first-time property purchase in mind then a Lifetime ISA offers the same 25% government bonus but on a larger amount - a 12 month period starting in July would span two separate tax years and so you could pay £8K into it over that time.

You have to have a LISA open for 12 months before using it without penalty if that's relevant to your situation....

Olly98 · 6 March 2018 at 2:29PM

Thanks.. I had looked at a LISA, however was under the impression that they money wasn!!!8217;t eligible for withdrawal within a certain term and would like the security knowing if I needed some of it I could withdraw an amount.. I shall look into this further thanks

eskbanker · 6 March 2018 at 2:45PM

Olly98 wrote: »

Thanks.. I had looked at a LISA, however was under the impression that they money wasn!!!8217;t eligible for withdrawal within a certain term and would like the security knowing if I needed some of it I could withdraw an amount.. I shall look into this further thanks

Yes, LISA savings can only be withdrawn without a 25% penalty charge if you're buying a first property or keeping them until 60.

Plenty of other options are available if you're keen on easy access, see https://www.moneysavingexpert.com/savings/which-saving-account - you may find a blended approach works, whereby you put some of your money into a LISA and the rest into one or more regular savers and/or interest-paying current accounts....

What saving account?

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