How and when will your bonus be paid?

From 6 April 2018, HMRC will calculate bonus payments on a month-by-month basis:

Your payments in...

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 government bonus

Your bonus will be paid into your account within 14 days of the 20th day of month two.

Using your Lifetime ISA - first time buyers

12 months after your first payment into your Lifetime ISA, you can use some or all of the money in it to help you buy your first home, up to the value of £450,000. If you're buying with someone else, you can both potentially use a Lifetime ISA if you’re both first time buyers.

To do this, you must instruct your conveyancer to use your Lifetime ISA to buy your first home at least 12 months after your first payment into it, however you can complete the forms in advance of 12 months so you're more prepared for your house move. If you’ve transferred a Lifetime ISA to us from another provider, the 12 month period starts from the date you first paid into your original Lifetime ISA.

Looking to use your Lifetime ISA to help buy your first home? Important information on accessing your funds here.

If you're a Skipton Lifetime ISA customer you can get £250 cashback back when you take out your first mortgage with us. Please remember any loan that we make will be secured against the property.

£1,000 cashback and no upfront fees - exclusive mortgage for those using a Lifetime ISA to buy their first home

Find out more

Using your Lifetime ISA - to help fund your retirement

You can also use your Lifetime ISA to help fund your retirement and access your funds without a withdrawal charge from the age of 60. Any money you keep in the Lifetime ISA after you turn 60 will continue to earn interest tax-free and you can make as many withdrawals as you like without being charged.

Once you reach your 50th birthday, you'll no longer be able to pay into a Lifetime ISA or receive the government bonus. However, your Lifetime ISA savings will still earn interest, or investment returns if you have a Stocks & Shares Lifetime ISA.

If you decide to use your Skipton Online Cash Lifetime ISA to save towards retirement, you should consider:

  • when you intend to retire
  • what other provision for retirement you are making (for example contributions to a pension); and
  • whether a Cash Lifetime ISA will meet your savings goals. For example, will it provide you with sufficient income in retirement?

As your circumstances can change over time you should regularly review whether the type of Lifetime ISA you hold is still right for you.

You can access money in your Lifetime ISA from age 60 to help fund your retirement

A Cash Lifetime ISA may not be the best option for retirement savings. It’s generally accepted that saving for retirement is a long term commitment and it could be better to invest in stocks and shares. However, this will depend on your personal circumstances, including your attitude to risk.

You could invest in a pension or stocks and shares Lifetime ISA. While the value of your investment is at risk and can fall as well as rise, it may be possible to receive a better return from a stocks and shares based product over the long term (more than 10 years) than you would from a savings account.

If you are employed, you should consider the potential availability of a workplace pension scheme and your tax position. If you save in a Lifetime ISA instead of enrolling in, or contributing to, a pension scheme from your employer or personal pension scheme:

  • you may lose the benefit of any employer contributions to that scheme; and
  • your current or future entitlement to means-tested benefits may be affected (these depend on the amount of income and capital you have, which includes savings).

Please be aware that the information we have provided is not advice. If you’re considering varying your existing pension arrangements as part of a decision to invest in a Lifetime ISA, you should seek independent financial advice before making any changes. If you don’t fully understand the pension and tax rules when making changes, you may not optimise your retirement savings and may face an income shortfall in retirement

Ready to apply?

If you don't yet have a Lifetime ISA, view full product details and apply online now

Apply now

Version Info: