Financial advice: deposit for a house

[Igglepiggleandhisboat]

I have recently received some compensation from a violent attack I suffered.
We are on a strict budget and are so careful with money. The compensation isn’t huge money but would put us in a position to put a small deposit down on a flat. This is a situation we never thought we would be in.

what is the best financial thing to do with this money whilst we save the rest of the deposit? I’ve got no idea as we never ever thought we would own!

Check out Martin Lewis Moneysavingexpert website. There’s a section on savings. Some good deals to be done for savings at the moment.

As much as possible in a LISA to benefit from the government help towards house buying unless you have a help to buy ISA already. Plus you can each have one of those ISA

Depends on how quickly you will need the money. I think Isas and Lisas penalise you by taking away your interest within a certain time frame, look into it.

We have our house deposit savings in an Investec instant access savings account. Whenever I access it (I put my rent in it for half the month) the money is with me within 15 mins, and they often put the interest rate up (unlike a lot of massive banks who have been told off by the government for not putting rates up quick enough).

I am so sorry to hear what happened to you.

If you're under 40, open a LISA, unless you want to buy very soon, as I think they need to be open a year before you can use the money without penalty.

You say 'we' so you can have one for each partner who qualifies.

For anything financial, look on Moneysavingexpert.com. They have a first time buyers guide which goes through all aspects of house buying, deposits, mortgages, fees, insurance, surveys, etc etc.

The amount you can put in a LISA is limited so put the rest in the best paying instant access savings account, you should be able to get around 5%.