- don’t need access to your savings until the age of 60, unless it’s to buy your first home in the UK with a purchase price up to £450,000.
- want to open and manage your account online.
- are aged 18 to 39.
- want to transfer money from another Lifetime ISA (even if you're aged 40 or over).
Summary Box
It is important that you read all parts of the Summary Box before you apply.
Account Name
Cash Lifetime ISA
What is the interest rate?
Annual interest:
2.55% tax-free pa/AER
- This account earns interest daily and it’s added to the account the day before the anniversary of account opening. There is no monthly interest option available.
- If you ask us to pay interest to a different account, we’ll pay it on the first business day after the day we’d have added it to this account. Business days exclude Saturday, Sunday and bank holidays.
Can Skipton Building Society change the interest rate?
- Yes, the interest rate is variable, so it can go up or down.
- Section 8 of our Savings Account Terms and Conditions [PDF] explains why we may change the interest rate.
- If there is at least £100 in the account, we'll notify you in advance if we intend to reduce the interest rate.
What would the estimated balance be after 12 months based on a £1,000 deposit?
The estimated balance after 12 months would be £1,025, assuming that:
- the account is opened with £1,000 and starts earning interest straight away.
- no further deposits or withdrawals are made.
- the interest is paid annually.
- the interest is added to this account.
- there is no change to the interest rates stated.
Estimated balances are for illustrative purposes only. They may be less for accounts opened by debit card or cheque because interest won’t be earned until the account receives the deposit.
The government will also pay a 25% bonus on your contributions which isn’t included in this estimation. Please see section G of the Cash Lifetime ISA Key Features and Terms & Conditions [PDF] which explains more about this.
If you’re intending to use your Lifetime ISA for retirement, please see section J of the Cash Lifetime ISA Key Features and Terms & Conditions [PDF] which includes further information about what your Lifetime ISA might be worth at age 60.
How do I open and manage my account?
- This account is available to UK residents aged 18 to 39. However, if you’re not a UK resident, you may still be able to open this account if you meet the government’s Lifetime ISA requirements. Please see the Lifetime ISA Declaration [PDF] on our application form for more details. If you’re 40 or over, the account is only available to you if you’re transferring from another Lifetime ISA.
- To open and manage this account, a valid email address must be provided.
- You can open and manage the account through Skipton Online. Once opened, you can also manage the account in the Skipton App. You may be required to set up appropriate security and access measures, and these might differ depending on how you choose to manage the account.
- The minimum opening and operating balance for this account is £1. You must keep at least this amount in the account to keep it open.
- The minimum operating balance must be met for interest to be earned.
- Subsequent payments in can be made from £1.
- You can pay in up to your total Lifetime ISA allowance each tax year (currently set at £4,000 per tax year), up to your 50th birthday.
- The maximum balance for this account (including government bonus payments) is £1 million.
- You must not subscribe to more than one Lifetime ISA in any one tax year.
- Joint accounts aren’t allowed.
Can I withdraw my money?
- Withdrawals or account closures before the age of 60 will normally incur a government withdrawal charge of 25% of the amount withdrawn unless it’s to buy your first home. Sections A and B of the Cash Lifetime ISA Key Features and Terms & Conditions [PDF] explain why you may get back less than you paid in and exceptions to the government withdrawal charge.
- If you withdraw by electronic payment, this must be to a UK bank or building society account in your own name. We won’t make an electronic payment to any other type of account.
Additional information
- The Lifetime ISA is a government savings scheme and may change in future.
- The Annual Equivalent Rate (AER) shows what the interest rate would be if interest was paid and added each year.
- All ISA interest is paid tax-free, which means it's exempt from income tax. Tax rules may change in future.
- Accounts can be withdrawn from sale at any time and without notice.
Important information
When you open a Lifetime ISA there are some rules around how, when and what you can withdraw your money for.
Any withdrawals within the first 12 months of your first payment into a Lifetime ISA will trigger a 25% government withdrawal charge, which means you would get back less than you paid in. After the first 12 months, you can withdraw money to buy your first home, but for any other withdrawals before the age of 60, the government withdrawal charge will apply (unless you are diagnosed with a terminal illness).
Find out more about the Lifetime ISA government withdrawal charge.
How does the government withdrawal charge affect my savings?
It’s important you use this account to only save money you don’t need immediate access to. (And it’s advisable to have an emergency fund of 3-6 months’ income for unexpected bills.) That way, you avoid being charged for withdrawals.
The 25% government withdrawal charge is only applied to the amount you withdraw. Where the government withdrawal charge applies, the 25% government bonus is returned. And you’ll also lose some of your own savings. This means you will receive back less than you paid into the account.
We’ve put together the following example to show you how the government withdrawal charge could impact your Lifetime ISA savings and government bonus.
| Actions | |
|---|---|
| You open the account with | £4,000 |
| The government bonus is added | £1,000 |
| Total for 1st year | £5,000 |
| You make a chargeable withdrawal | £5,000 |
| The government withdrawal charge | -£1,250 |
| You receive back | £3,750 |
| You lose this much of your own savings | -£250 |
Please note, this example doesn’t include any interest your savings earn.
What are the risks of using a Lifetime ISA for retirement savings?
A Cash Lifetime ISA may not be the best option for retirement savings. You might wish to consider investing in a pension, a Stocks and Shares Lifetime ISA, or both. Saving for retirement is usually a long-term commitment. Investing could give you a better return than a savings account over the long-term (more than five years). But you should be aware that the value of your investment can go down as well as up and you may get back less than you invested.
If you’re employed, you should consider your tax position and whether a workplace pension scheme might be better for you. If you choose to save in a Lifetime ISA instead of a private workplace pension scheme:
- you may lose the benefit of any employer contributions to that scheme; and
- it could affect any means-tested benefits you may have been entitled to, now or in the future. This would depend on the amount of income and capital you have, which includes savings.
If you’re thinking of using a Cash Lifetime ISA to save towards retirement, you should consider:
- when you plan to retire
- what else you’re doing to save for retirement (for example, paying into a pension); and
- whether the money you save in a Cash Lifetime ISA will be enough to meet your needs when you retire.
Lifetime ISAs are available as a Cash or a Stocks and Shares option. Skipton offers a Cash Lifetime ISA only. Any time your circumstances change you should review whether the type of Lifetime ISA you have is still right for you.
This information isn’t advice. You should seek financial advice if you’re thinking of changing your existing pension plans to invest in a Lifetime ISA. If you don’t understand the pension and tax rules when you make changes, you may not make the most of your retirement savings. This could mean you don’t have enough money to support you when you’re retired.
What might my Lifetime ISA be worth when I am age 60?
The following table is designed to help you understand what the value of a Lifetime ISA might be at age 60. This would depend on the age at which you start saving and assumes:
- You make the maximum annual subscription at the beginning of each tax year.
- You continue to do this until you are aged 50.
- You receive the Lifetime ISA government bonus each year and
- This is based on the current allowance and bonus levels and assumes they do not change.
It may not be relevant if you’re saving in a Lifetime ISA for house purchase.
The estimated figures in columns 4 and 5 are based on standardised rates of return. These may not reflect actual or expected returns for your chosen Lifetime ISA and may not include the effect of inflation. These are not based on the current rate of interest for the Skipton Cash Lifetime ISA.
Column 6 shows how inflation (which we assume to be 2%) and charges could reduce the amount that would be returned from a Lifetime ISA. As the Skipton Cash Lifetime ISA has no management charges, these have not been included. It's worth bearing in mind that charges will normally apply for Stocks and Shares Lifetime ISAs.
You can use column 6 to compare a Lifetime ISA offering 5% returns (without management charges) to other Lifetime ISAs or long-term savings products. This may not match the current rate on the Skipton Cash Lifetime ISA. If our rate is less than the 5% used in the illustration, the estimated outcome at age 60 could be much less than the figure provided in column 5.
| 1. Age saving in a Lifetime ISA started | 2. Total amount paid in by Lifetime ISA saver/investor | 3. Total amount paid in, plus Lifetime ISA government bonus | 4. Estimated outcome at age 60 from 0% return | 5. Estimated outcome at age 60 from 5% return | 6. Charges and estimated inflation would reduce a 5% return to |
|---|---|---|---|---|---|
| 18 | £128,000 | £160,000 | £95,310 | £363,380 | 3% |
| 25 | £100,000 | £125,000 | £79,380 | £252,341 | 3% |
| 30 | £80,000 | £100,000 | £66,539 | £185,974 | 3% |
| 35 | £60,000 | £75,000 | £52,334 | £128,726 | 3% |
| 40 | £40,000 | £50,000 | £36,619 | £79,343 | 3% |
Before you apply
- You will need to provide your National Insurance number, so it’s a good idea to have it to hand before you begin.
- You may need to prove your identity – to find out more about this, please read How to prove your name and address [PDF]
- Read these documents in full:
£250 Cashback offer
We’ve got a range of mortgages for first-time buyers. Skipton Lifetime ISA customers who are buying their first home with a Skipton mortgage will be eligible for £250 cashback following completion.
- This is subject to our normal affordability assessment and lending criteria at the time. Skipton Lifetime ISA customers who are buying their first home with a Skipton mortgage will be eligible for £250 cashback once the house purchase has completed.
- This offer is only valid for mortgages completing from 6 April 2018 to 30 June 2027.
- Cashback will be paid for new mortgages where at least one of the applicants is a Skipton Lifetime ISA customer buying their first home.
- If the mortgage is in joint names and with another Skipton Lifetime ISA holder, only one cashback amount will be paid.
- Cashback will only be available once.
You could lose your home if you don’t keep up your mortgage repayments.
Need help?
Take a look at our Lifetime ISA information page for more detail.
If you have a question or need help deciding then you can phone, web chat or call into a branch - we're always happy to help.
Speak to us on web chat or alternatively call us on 0345 608 0786
You're protected up to £85,000
Your eligible deposits with Skipton Building Society are protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS), the UK's deposit guarantee scheme.
