Getting on the property ladder is a dream for many, but with house prices soaring and deposits getting bigger, it’s a tough climb. If you’re a first-time buyer, saving for a deposit is a marathon, not a sprint. Here’s a breakdown of the best savings accounts to help you reach your goal:

1. Lifetime Isa (LISA)

This is the gold standard for first-time buyers. The government gives you a £1 bonus for every £4 you save, up to a maximum of £1,000 a year. Plus, your savings are tax-free.

The catch: You can only use the money to buy your first home (under £450,000) or withdraw it after age 60. Penalties apply if you withdraw before age 60 for other reasons.

Top LISA pick: Moneybox app (4.4% including a fixed bonus for the first year).

2. Regular Savings Accounts

A great way to get into a saving habit. You deposit a set amount each month, usually with a good interest rate. But monthly limits can be low, and there may be restrictions on withdrawals.

Top regular saver picks:

• The Co-operative Bank and First Direct (both offer 7% interest for existing customers).
• Nationwide (6.5% interest)
• Lloyds Bank (6.25% interest)

3. Easy-Access Savings Accounts

Perfect for those ready to buy soon. You can add and withdraw money as needed, making it ideal for your “ready to go” funds.

Important: Check withdrawal limits before choosing an account. Some allow just a few withdrawals a year.

Top easy-access picks:

• Many now pay 5% interest.

Beware: Easy-access rates are variable, meaning they can be cut or raised at any time. Keep an eye out for better rates and be ready to switch.

4. Fixed-Rate Savings Accounts

Lock in a guaranteed return for a set period (typically 1-5 years). Great if you’re not buying immediately, but be warned: you can’t access your money during the fixed term.

Top fixed-rate picks:

• 1-year fix: 5.22%
• 2-year fix: 5.05%
• 3-year fix: 4.8%

5. Cash ISAs

Shield your interest earnings from tax. You can save up to £20,000 per year. Many offer rates comparable to taxable savings accounts.

Top Cash ISA picks:

• Easy-access: Plum (5.17%) and Chip (5.1%)
• Fixed-rate: Rates up to 4.77% for 1-year, 4.63% for 3-year, and 4.41% for 5-year.

Key takeaways:

• Start saving early and often. Time is your biggest asset.
• Choose an account that suits your needs and timeline.
• Don’t be afraid to shop around for the best rates.
• Get expert advice if needed. A financial advisor can help you create a personalized savings plan.

It’s a long road to homeownership, but with the right savings plan, you can get there!