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  • FIRST POST
    • dipika15
    • By dipika15 13th Jan 19, 4:46 PM
    • 5Posts
    • 0Thanks
    dipika15
    Don't know what to do with my savings
    • #1
    • 13th Jan 19, 4:46 PM
    Don't know what to do with my savings 13th Jan 19 at 4:46 PM
    Hi Martin

    I have over 20k in a HSBC Flex Saving account. I'm not sure what would be better a help to buy ISA or LISA. Also what should I do with the rest of the money.

    Hope you can help.

    Thanks,
    Dipika
Page 1
    • makemerich12
    • By makemerich12 13th Jan 19, 5:11 PM
    • 84 Posts
    • 14 Thanks
    makemerich12
    • #2
    • 13th Jan 19, 5:11 PM
    • #2
    • 13th Jan 19, 5:11 PM
    Either would be better then that
    • dipika15
    • By dipika15 13th Jan 19, 5:26 PM
    • 5 Posts
    • 0 Thanks
    dipika15
    • #3
    • 13th Jan 19, 5:26 PM
    • #3
    • 13th Jan 19, 5:26 PM
    That doesn't really help.
    • Alexland
    • By Alexland 13th Jan 19, 5:30 PM
    • 4,707 Posts
    • 4,043 Thanks
    Alexland
    • #4
    • 13th Jan 19, 5:30 PM
    • #4
    • 13th Jan 19, 5:30 PM
    Generally if you are saving a lot of money to buy a property in over 12 months time a LISA beats a HTB ISA as you can make a higher contribution for a bigger bonus. In addition the LISA bonus can be used for the exchange deposit and for a higher value property if outside London.

    Read the product terms carefully to check it is suitable.
    Last edited by Alexland; 13-01-2019 at 5:36 PM.
    • dipika15
    • By dipika15 13th Jan 19, 5:33 PM
    • 5 Posts
    • 0 Thanks
    dipika15
    • #5
    • 13th Jan 19, 5:33 PM
    • #5
    • 13th Jan 19, 5:33 PM
    Generally if you are saving a lot of money to buy a property in over 12 months time a LISA beats a HTB ISA as you can make a higher contribution for a bigger bonus. In addition the LISA bonus can be used for the exchange deposit and for a higher value property if outside London.
    Originally posted by Alexland
    But what do I do with the rest of the money I have in my savings as far as I'm aware you can only put 4K per year in a LISA.
    • Alexland
    • By Alexland 13th Jan 19, 5:40 PM
    • 4,707 Posts
    • 4,043 Thanks
    Alexland
    • #6
    • 13th Jan 19, 5:40 PM
    • #6
    • 13th Jan 19, 5:40 PM
    But what do I do with the rest of the money I have in my savings as far as I'm aware you can only put 4K per year in a LISA.
    Originally posted by dipika15
    Its per tax year ending 5th April starting 6th April so that should cover the first 8k. For the rest you can use high interest rate current and saving accounts.
    • xylophone
    • By xylophone 13th Jan 19, 10:36 PM
    • 28,888 Posts
    • 17,492 Thanks
    xylophone
    • #7
    • 13th Jan 19, 10:36 PM
    • #7
    • 13th Jan 19, 10:36 PM
    After depositing the 8000 into a LISA you will have 12000.

    Have you ever had a Nationwide Flexdirect current account?
    If not, open one and deposit your 2500.

    Open a TSB Classic plus current account - deposit 1500.

    Set up a same day mid month SO for 1000 from TSB to NW and from NW to TSB.

    The NW account offers a monthly saver - you could open one.

    TSB offers a monthly saver - you could open one.

    Do you live near a Virgin Money Store? You could open the branch regular saver.

    Other savings rates here

    https://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html
    • Alexland
    • By Alexland 13th Jan 19, 11:03 PM
    • 4,707 Posts
    • 4,043 Thanks
    Alexland
    • #8
    • 13th Jan 19, 11:03 PM
    • #8
    • 13th Jan 19, 11:03 PM
    Also worth mentioning that even with a LISA you can still contribute to a Cash ISA such as a HTB ISA which you could just use for the good interest rates as you can withdraw without penalty or claiming the bonus.
    • Paul_DNAP
    • By Paul_DNAP 14th Jan 19, 11:25 AM
    • 409 Posts
    • 508 Thanks
    Paul_DNAP
    • #9
    • 14th Jan 19, 11:25 AM
    • #9
    • 14th Jan 19, 11:25 AM
    But what do I do with the rest of the money I have in my savings as far as I'm aware you can only put 4K per year in a LISA.
    Originally posted by dipika15

    Easiest thing would be to Put 4k each in a 1year fix, a 2year fix and a 3year fix and they should mature in time for the next three years' contributions into your LISA.


    Of course, you can get much better interest rates by doing a bit more work such as pushing it around the premium current accounts and their associated regular savers etc. as mentioned above.
    (Although I could be wrong, I often am.)
    • ryannnking
    • By ryannnking 14th Jan 19, 1:27 PM
    • 41 Posts
    • 25 Thanks
    ryannnking
    You need to think about how much risk you want to be exposed to, and how long you are able to invest for.
    If you wont need the money for 5+ years look into passively investing into an index fund, until you research more about investing.

    For zero risk investments, you can take advantage of savings accounts currently paying high interest rates.
    - Nationwide 5% on first 2.5k
    - Tesco 3% on first 3k
    - Marcus 1.5% up to 250k

    Ryan
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