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where to save money for a house deposit

2 replies

winebreeze · 15/09/2024 13:49

I'm starting to save for a house deposit. I'm over 40 so can't use a Lisa

Where else can I save money are there any other schemes out there?

OP posts:
isthewashingdryyet · 15/09/2024 15:43

You need to find a high rate of interest, in an account that you don't have to pay tax on. This means an ISA , and you can pay 20k in each tax year.
You can then use a fixed rate ISA where you lock the money in for a year to get an even better rate of interest.
Premium bonds are also tax free but the wins are obviously not guaranteed. You can save up to 50k
Beware seemingly high rate accounts that you pay in a set amount each month, as the high rate is only payable on the first months contribution

Lucanus · 15/09/2024 22:04

@isthewashingdryyet
Beware seemingly high rate accounts that you pay in a set amount each month, as the high rate is only payable on the first months contribution

This part is misleading. You will get the same daily rate on every contribution, except you will only get a full year's worth on the first month. Regular saver accounts are very good value.

Main thing to be aware of with these is that the rate will drop a lot at the end of the year when the account changes to a normal savings account. So need to move money into a higher interest account at that point.

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