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Hi Anon,
Since you're saving exactly £500 per month, I'd recommend opening a regular saver account. With Coventry, you can deposit up to £500/month. Regular savers are great because they offer higher interest rates than other savings accounts. This page 15 has a list of the highest-paying regular savers atm.
I won't recommend putting the money in a stocks and shares ISA with only 3 years to go before you buy the house. It's just too risky.
I hope this helps!
Both have their place and it depends on what you want the lifetime ISA for and your time horizon.
e.g. if you’re using it on a first home in the next few years - cash is probably the better choice as a S&S ISA risks being down when you need the money for a deposit.
if this is just for retirement and you’re using the LISA to get the government bonus - a stocks and shares Lisa is better as it will on average return more over the long term and protects against inflation
Thanks,
Luke
@Becca12 This really depends on your timeframe, the level of risk you're willing to take, and your goals (saving for a house or retirement).
Savings (cash LISA) is usually best if you know you'll want the money in a shorter time period, say less than 3/5 years. There's no risk to losing money with savings as you're given interest from the bank as your return.
Investing (S&S LISA) is usually for longer term plans, like minimum 5 years. If you invest money today and you want to buy a house next year, the market may be down over the next... (More)
Hey @Trevor14, if after you've weighed both options and the LISA is your preferred choice you can easily make the transfer. You have to have the LISA for one full year before getting the bonus s if you're not planning on buying a house in the next year you'll be fine.
If you have less than £4k in your current HTB ISA then this will be very easy to do as the LISA limit is £4k per tax year. When you open the LISA you'll be asked if you're doing an ISA transfer, choose yes then you'll be asked... (More)
