Lifetime ISA 0.80% AER/tax-free variable
If you’re aged between 18 and 39 you can open a Lifetime ISA, and could earn up to £1,000 per year from the Government until you reach your 50th birthday. For every £4 you save, you’ll receive a £1 Government bonus which you can then use to put towards your first house purchase or your retirement.
Find out more about our Lifetime ISA, which is also known as LISA, and let us and the Government help you boost your hard-earned savings.
Who is eligible for a Lifetime ISA?
The Lifetime ISA is open to first-time buyers between the ages of 18 and 39 living in the UK. The Lifetime ISA is also available to first-time buyers in this age group who are currently serving in the armed forces overseas or to their spouses/civil partners. Applicants should be prepared to open a savings account that they cannot access for the first year.
How much can I save in a Lifetime ISA each month?
There is no minimum amount you can deposit into your Lifetime ISA each month. The annual deposit limit for each tax year is £4,000, which averages to £333 per month. However, you can deposit more than this in some months and less in others, as long as you don’t surpass £4,000 in total during that tax year.
The Government will pay a 25% bonus on your contributions, up to a maximum of £1,000 a year.
How much can I save in a Lifetime ISA in a year?
Your Lifetime ISA annual saving limit spans the length of the tax year, which runs from April 6th to April 5th. You are allowed to invest a maximum of £4,000 during these 12 months. You can only open one Lifetime ISA per tax year and deposit into this account only.
The Government will pay a 25% bonus on your contributions, up to a maximum of £1,000 a year.
How much can I save in a Lifetime ISA in five years?
The annual deposit limit for your Lifetime ISA is £4,000 each tax year, which means you could save up to £20,000 in five years. The Government will award you a bonus of 25% at the end of every tax year, which could be as much as £1,000.
While you can only apply for the Lifetime ISA between the ages of 18 and 39, you can carry on saving into it until you are 50 and continue earning the 25% bonus on top of your savings. However, your bonuses will stop after you reach 50 years old and you won't be able to withdraw your savings until you are 60, for your retirement. You will continue to earn interest on your savings until you withdraw from or close your account.
Find out more about the Lifetime ISA