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    • Chattygirl
    • By Chattygirl 6th Aug 18, 6:41 PM
    • 2Posts
    • 0Thanks
    Help to Buy ISAs
    • #1
    • 6th Aug 18, 6:41 PM
    Help to Buy ISAs 6th Aug 18 at 6:41 PM
    Can someone give me advice on an help to buy ISA. I believe the most you can open one with is 1200 and max 200 per month. If I have 4,000 to save towards a deposit for a house, and want to save 200 per month. What is the best way to maximise my money prior to buying a house, hopefully next year. Should I put 3000 in a high interest account and then move it all into a Lifetime ISA closer to the time? All suggestions welcome
    Last edited by Chattygirl; 06-08-2018 at 6:51 PM. Reason: additional information
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    • Rich2808
    • By Rich2808 6th Aug 18, 7:08 PM
    • 696 Posts
    • 543 Thanks
    • #2
    • 6th Aug 18, 7:08 PM
    • #2
    • 6th Aug 18, 7:08 PM
    Unless you want to buy a house in the next few months - or are over 40 - a lifetime isa is a better bet particularly outside London where the property limit is 450k (vs 250k for the HTB isa).

    You can invest your full 4000 straight away and qualify for a 1k bonus at the end of the tax year - and then use it for a purchase in the next tax year. If you opened a help to buy isa you could only invest 3,000 by 5 April 2019 - which would only accrue a 750 bonus.

    Of course you could also keep the 4k in a high interest current account until March as you suggest - and then pay it into your lifetime isa as a lump sum.

    If you go for the cash version a lifetime isa will pay less interest - but not 250 less interest!
    Last edited by Rich2808; 06-08-2018 at 7:10 PM.
    • frankmassiebonsai
    • By frankmassiebonsai 6th Aug 18, 7:29 PM
    • 16 Posts
    • 7 Thanks
    • #3
    • 6th Aug 18, 7:29 PM
    • #3
    • 6th Aug 18, 7:29 PM
    Although, its worth opening the LISA with 1 now to get the one year clock started. Just remember to only pay in up to 3999 later in the year.
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