Save for your first home or retirement in a Lifetime ISA and earn a 25% government bonus
A LISA is a type of savings account that was designed specifically for people aged 18-39 who are saving for their first home or retirement. Saving into a Lifetime ISA can give your money a boost because the government adds to your savings, but there are rules around withdrawing your money that you need to know about too.
However there are restrictions on withdrawing your money:
Any withdrawals within the first 12 months of your first payment into a Lifetime ISA will incur a 25% government charge, which would mean you would get back less than you paid in.
After 12 months of making your first payment, you can withdraw money to buy your first home, but if you withdraw for any other reason than that before you reach 60 years of age, the government withdrawal charge will apply (unless you're diagnosed with a terminal illness).
Find out more about the LISA withdrawal charges.
View full product details of our Lifetime ISA and apply online now.
A Lifetime ISA may not be right for you if you require any access other than to purchase your first home or retirement because there are restrictions around when you can withdraw your money.
Some ISAs are flexible, which means you can withdraw and pay back in throughout the tax year without affecting your overall annual ISA allowance. However, Lifetime ISAs are not flexible, so it will not be possible for withdrawals to be made and replaced without affecting your annual Lifetime ISA allowance or your overall ISA allowance.
If you close your Lifetime ISA after you reach the age of 40 you won’t be able to open a new one. If you intend to use your Lifetime ISA savings towards buying your first home or to save towards retirement, you may wish to leave a small amount in the account so you can continue to save in it in future.
The government will pay a 25% bonus on top of your contributions up to a maximum of £1,000 each tax year.
Your bonus is calculated on any payments you make into your account from the 6th of the month
to the 5th of the following month inclusive.
Your bonus will be paid into your account within 14 days of the 20th day of month two.
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We’ve pulled together what you need to know about using your Lifetime ISA to buy your first home.
Using your Lifetime ISA to fund your retirement? We’ve put together what you need to know.
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