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  • I think the best thing to do looks something like this:

    • £4k in a LISA for the £1k government bonus. Do this now and you can do it again after tax year ends (Apr. 5th) to turn £8k into £10k in 2 months. But you can't spend it for a year so this won't work if you want to buy in 6 mos, check the terms.

    • £2.5k in Nationwide FlexDirect for the 5% interest. I can refer you (and anyone else interested) for a free £100 each.

    • Any remainder in Cash ISAs/normal savings accounts/regular savers/etc. I've just opened a Ford Money flexible ISA at 1.27% (but flexible withdrawal) and a Coventry BS regular saver at 2.5%. Savings accounts are all pretty shite though. You actually lose money due to inflation.

    Remember to keep some accessible in case you get sacked/need to repair car/etc.

    Edit: you said you've got H2B ISAs so depending on how much is in them disregard the LISA bit. But I have both and just use the H2B as a restricted savings account as the interest rate is good at 3.5%. Be warned you can't pay into a H2B and Cash ISA in the same year.

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