Best place to put house deposit? (Not touching it for the next 2 years)

[amayzin]

We have a generous gifted deposit and not sure where to put it. Lifetime ISA might be good but heard varying things about them and not sure if the government bonus can only be spent on legal fees rather than the deposit itself… there’s some kind of loophole

What would be the best kind of account? I’m going to ring the bank tomorrow anyway and see what they say but I hear people talking of premium bonds. I’m a bit financially illiterate so don’t know whether something like that would be worth it in our situation where we won’t be touching it for two years until rates have stabilised/fallen slightly

Grateful for any advice thankyou

If house value under £450k, then use LISA for £4k each financial year. LISA is used by conveyancer for deposit as part of getting a mortgage.

Remainder put in a With Notice account, as those often get the highest interest. Some are 90 day notice, others 120 days. Decide how far in advance you are likely to know when you need to take money out.

If you may purchase quickly, such as by being a cash buyer, then use an instant access savings account.

I would focus on accessibility over interest rate if the timing of when the purchase will be is uncertain. If you know it can be locked away for a year, or two, then a fixed term bond may be suitable.

I put some money in a 2 year bond with Lloyds a couple of months ago. I think it was around 5.5%, though that may not be the rate they currently offer.