Isa and lisa? New year new ideas

makemerich12
makemerich12 Posts: 157 Forumite
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in Savings & investments
Savings wise i'd like to think i'm pretty good i only spend if i badly need to but i'm not smart enough to take a "risk" because i don't fully understand S8S much.

I'm now working towards planning how much i can save this year and as far as i know i could get a Isa and lisa in the same year? Is this current below are the current accounts i have-

Isa at 0.75% maxed out
Bonus Saver at 0.55%
Reg Sav at 3.0%
I'd ideally trying to save for a house.
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Comments

  • masonic
    masonic Posts: 23,270 Forumite
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    None of those rates are competitive, so you should consider moving the savings you have as well as finding the best place for those you want to make in future.

    You can open a LISA and any other type of ISA and pay into both in the same tax year. Is a cash ISA really saving you any tax? Most people don't exceed the Personal Savings Allowance and non-ISA accounts generally pay higher rates.

    A S&S ISA would be unsuitable if your objective is to buy a house in a few years.
  • ryannnking
    ryannnking Posts: 45 Forumite
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    To be honest them rates are that great, but obviously if you're only comfortable with minimal risk and that suits you then thats the best plan of action!

    Although LISA are not considered the best ISA. You effectively get a 25% rate of return, as you invest £4k and then get £1 from the government. Could be something to look into.

    S&S ISA you need to leave the money in and gradually invest for at least 5 years, but 7-10 years is probably better. The longer the better pretty much! So may not be a good idea if you will need a house in the next few years as shares can be volatile.

    Ryan
  • eskbanker
    eskbanker Posts: 30,993 Forumite
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    ryannnking wrote: »
    Although LISA are not considered the best ISA. You effectively get a 25% rate of return, as you invest £4k and then get £1 from the government.
    Sounds like another cut that somehow went under the radar, or is this a quote from Diane Abbott? ;)
  • masonic
    masonic Posts: 23,270 Forumite
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    ryannnking wrote: »
    Although LISA are not considered the best ISA. You effectively get a 25% rate of return
    The 25% rate of return assumes you withdraw the money after 1 year. If it is locked in the account for several years the overall rate will be lower, and if the account is used for retirement, the effective rate of return is likely to be around 2% inclusive of interest, based on current rates.
  • makemerich12
    makemerich12 Posts: 157 Forumite
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    I'd go through the S&S ISA route but wouldn't put more then 1k in as a deposit and would have to work out how much to put in monthly,As for the isa I've maxed out what should i do with that?

    If i just open a new one straight away i'd of maxed it out in one and with the lisa you don't get the money until you retire or buy a house?
  • Alexland
    Alexland Posts: 9,653 Forumite
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    ryannnking wrote: »
    Although LISA are not considered the best ISA.

    Rubbish, there is no 'best ISA' this is all about suitability for the OPs circumstances.

    In some circumstances a LISA would be the most suitable - and in others completely inappropriate.

    Alex
  • makemerich12
    makemerich12 Posts: 157 Forumite
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    If i opened a Lisa now and maxed it out(4k) before the tax year ends could i then get another one come April? On top of a new isa
  • kwame41
    kwame41 Posts: 168 Forumite
    makemerich12 wrote: »
    If i opened a Lisa now and maxed it out(4k) before the tax year ends could i then get another one come April? On top of a new isa

    Yes. But you dont need another one. Just pay another £4000 in the same LISA in the new tax year and keep getting the bonus every year you invest. Until you buy a house or take at retirement.
  • eskbanker
    eskbanker Posts: 30,993 Forumite
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    makemerich12 wrote: »
    If i opened a Lisa now and maxed it out(4k) before the tax year ends could i then get another one come April? On top of a new isa
    Depends what you mean by your current ISA being 'maxed out' - if this means that you've paid £20K into it this tax year then you can't pay anything into any ISA until the next tax year, when you have a fresh £20K allowance to share across all ISAs.
  • makemerich12
    makemerich12 Posts: 157 Forumite
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    eskbanker wrote: »
    Depends what you mean by your current ISA being 'maxed out' - if this means that you've paid £20K into it this tax year then you can't pay anything into any ISA until the next tax year, when you have a fresh £20K allowance to share across all ISAs.
    Yes i mean get a lisa now and max that out, then another in april plus a new Isa as i have maxed the current one out for this year
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