Alexandra's Lifetime ISA story
We spoke to freelance theatre director and The Nottingham member, Alexandra Moxon, about her reasons for opening a LISA.
Q: How did you hear about LISA?
A: I heard about it in my local branch after a passing conversation with the branch manager, Jo.
Q: Why did you decide to open a LISA?
A: The option to place money into an account where you receive 25% bonus* allows me to save towards my retirement with external input. I was very unsure about how to start saving for my retirement in an era with interest rates so low. LISA enables me to save for my future with confidence.
Q: Were you already a saver with us?
A: Yes, I have been a saver with The Nottingham since I was a child and had a Robin Hood Young Savers Account.
Q: Are you happy you were able to open your LISA in-branch?
A: Yes, that was a very important factor for me. The other building society to offer a cash LISA was an online set-up and offered a meeting only if you had technical issues. What I particularly like about The Nottingham is I had the chance to ask questions in person, which helped me feel more confident about the product and its benefits as well as ensuring that it had all been set up correctly.
Q: Were you happy with the service at The Nottingham?
A: It was brilliant! Jo was really helpful - she answered all of my questions and kept me informed with all of the LISA developments whilst it was still in the process of being launched.
Q: Finally, we hear being a member of The Nottingham is something of a family tradition?
A: Yes. In 1985 my dad banked with a different bank, where he couldn’t get the mortgage he wanted, so he went to The Nottingham, who offered him the mortgage and were extremely helpful. As a result, he closed his savings account with the other bank and became a member of The Nottingham, who he has been with ever since.
*The 25% bonus is provided by the government. The Lifetime ISA can be opened by customers aged between 18 and 39 years of age that reside in the UK to either save for their first house purchase or their retirement. The product has a 20-25% charge associated with any withdrawals that are not an eligible life event (first house, aged over 60, terminal illness and deceased). Investors can pay in up to £4k per tax year into their Lifetime ISA and the government will pay a 25% bonus on a monthly basis from 6th April 2018. Customers cannot pay into their Lifetime ISA from the age of 50+ or earn the 25% bonus. If you save in a Lifetime ISA instead of enrolling or contributing to a pension scheme, you may lose valuable employer contributions. Entitlement to any means tested benefits may be affected. The 20-25% withdrawal charge is on everything (deposits made, bonus and interest). Any withdrawals made from your Lifetime ISA between now and Monday 5th April 2021 will incur a 20% Government withdrawal charge. After Monday 5th April 2021 you'll be charged 25% which means you could get back less than you paid in. For full terms and conditions please ask branch staff for our Keyfacts document and summary box.
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