Not how the maths work unfortunately mate, from the moneysavingexpert website...You get a 25% bonus from the Gov, they are claiming it back that is all. It is no reason to put anyone off getting one as you don't lose any of your own cash, and still get interest.
For the HTB ISA you only got the bonus at the end so when you bought a house, so it wasn't applied and taken off, but you could only put in £2,400 a year rather than £4,000 and the maximum was £12k you could put in
(5 years), so the LISA is much better.
The deposit fund is pretty much a cash type fund.I'll ring and ask them
Transferring into one of the funds listed won't cost anything which is confirmed on one of the other pages of the letter
View attachment 111627
And the LISA can only be used to buy a property £450K or less.With the LISA it depends on what you are planning on doing with the money, it can only be used for 2 purposes:
1. Buying your first property, but if you already own or are on the deeds of another property then it rules you out of using it for buying a second property or using the money to pay off an existing mortgage.
2. Alternatively you can use it as part of a pension which you can can only access from 60yrs old.
If you use it for any other purpose or access the money as part of a pension before 60 you lose 25% in tax.
When I looked at all the different funds on the list and their performance over the years, the deposit fund is pretty stagnantThe deposit fund is pretty much a cash type fund.
It returned 4.1% over the last 12 months mainly because rates have risen. Prior to that it would have been really poor due to the low rates.When I looked at all the different funds on the list and their performance over the years, the deposit fund is pretty stagnant
Is that due to bank interest rates being shite and now they’re up to around 5% it’s a relatively safe bet For a 4/5% return?