Best saving account for first time buyer?

[LostDaydream]

Hi! My DP and I are in our mid 20s and want to transfer our savings from our separate current accounts into saving accounts to save for a deposit for a house. We are both first time buyers. Where do we start?😅

Do you know about LISAs?

Hi! No I don’t know much about them.

Hmm I just googled LISA and you can only put in £4K a year.

This guide is good www.moneysavingexpert.com/savings/lifetime-isas/

It’s worth using one as you get a free £1k a year. You can of course also save in another account as well if you’re saving more than £4k pa.

You can only put £4000 in a year but then the government give you an extra £1000 which I think is better than other schemes

Yes I think we’ll do that! I’m struggling to find a bank that offer Lifetime ISAs!

The banks with the best rates are listed on the link.

With a LISA, they are individual so you can put £4k in each giving you a free £2k a year. Absolute no brainer.

LISA definitely. When are you planning to buy? If you put in £4k before April2023 and then £4k in April (new financial year) then you will have £2k by May for doing not very much! (I think that's how it works!)

P.S: the rest could be saved in Premium Bonds (see NS&I) for easy access, or there are a few easy access savings accounts that will give you some interest. So much depends on when you are planning to buy though.

We’re hoping to save for 12 months so with the LISA we would have (between us) £10k and then save elsewhere too. Looking through some of the places that offer LISAs. Thank you everyone 😊