Open a Lifetime ISA online today.

Important Lifetime ISA information

Please only visit branches for essential activities such as cash withdrawals. We kindly request you do not visit a branch to open a Lifetime ISA as this can be opened online. 

If you’re aged between 18 and 39 years, a Lifetime ISA (also known as LISA) could earn you 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 - you can then use this money to put towards your first house, or your retirement.  

With the Lifetime ISA, the maximum you can save in a tax year is £4,000, meaning your Government bonus will be a maximum of £1,000 a year.

Fee free mortgage broker advice

Once you've saved at least £500 in your account for 12 months, you'll have access to fee free mortgage broker advice from Nottingham Mortgage Services, which is usually £299. We know the house buying process can be confusing but their trusted mortgage brokers will clear things up for you about by telling you much deposit you may need to save and how much you could actually borrow.

Talk to a mortgage broker on 0344 481 0076

Account details

  • 25% Government bonus

  • UK residents aged 18-39

  • Available online and in branch

  • Earn interest tax-free

  • Deposit up to £4,000 per year

  • Transfers in from a single Lifetime ISA provider are permitted (new online accounts only - aged 18-39)

Summary table

Account name

Lifetime ISA.

What is the interest rate and is it fixed?
The annual interest rate is variable and currently set at 1.25% p.a./AER*. The annual interest is tax-free.

Will I be taxed on the interest?

No. The interest you’ll receive will be paid free of UK income tax, however, the tax treatment of ISAs could change.

How do I get the bonus payments?

The Government will pay a 25% bonus on your contributions, up to a maximum of £1,000 a year.

Can I withdraw my money?

Any withdrawals made from your Lifetime ISA up to Monday 5th April 2021 will incur a 20% Government withdrawal charge which means you could get back less than you paid in. After Monday 5th April 2021 any withdrawals will incur a 25% Government withdrawal charge. After the first 12 months, you can withdraw money to buy your first home, however if you make 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 this below. If you are transferring your Lifetime ISA to us this is the date you first funded your Lifetime ISA with your existing provider.

How can I open a Lifetime ISA with The Nottingham?

You can open a Lifetime ISA with us online or in branch. You’ll need to have certain information to hand, find the full list below. If you are 18-39 you can transfer your Lifetime ISA funds from your existing provider via our online application process only.

What would my balance be after a year of saving?

You can use our savings table below to see how your investment will grow over time based on your savings style.

As an example, if you deposited £1,000 on account opening at the start of the tax year, your balance after 12 months would be £1,262.50. You would have earned £12.50 interest and received £250 Government bonus.

Must my first house meet any criteria to be eligible?

Yes. You need to have had your Lifetime ISA open for at least 12 months before you can withdraw money to purchase a house. If you are transferring your Lifetime ISA to us this is the date you first funded your LISA with your existing provider. House price must not exceed £450,000 to be eligible. Please read our key features document to find out more about the criteria.

Additional information
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).

Key product information

To find out more, download our key product information guide for our online Lifetime ISA or our in-branch Lifetime ISA.

1.25% tax-free annual interest plus 25% Government bonus

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Your savings are protected

Your eligible deposits with Nottingham Building Society are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit protection scheme.

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Opening an account

Find out if you're eligible for a Lifetime ISA below.

In order to open a Lifetime ISA you must:

  • Be a UK resident
  • Be saving for your first home or retirement
  • Be aged between 18 and 39
  • Have at least £10 to open your account with
  • Be able to provide us with your National Insurance number
  • Meet our ID requirements and the HMRC eligibility checks.

If you're new to The Nottingham, aged 18-39 and open your account online you can transfer in from another provider to open an account however you must transfer all of your Lifetime ISA funds, partial funds are not permitted. We only accept transfers in from a single Lifetime ISA provider, multiple Lifetime ISA transfers in are also not permitted. You cannot transfer in to open a branch-based Lifetime ISA.

If you want to find out more, get in touch with your nearest branch and our advisers will talk you through the benefits of a Lifetime ISA. Alternatively, you can open an account online.

Managing your account

Navigating your account is a straightforward process. Find out more about the regulations of the account here.

You can manage your branch Lifetime ISA by passbook in any of our branches. If you have an online Lifetime ISA you can log in securely here. Currently you are not able to manage your branch Lifetime ISA online or your online Lifetime ISA in branch.

Paying money in

 You can deposit up to £4,000 each tax year, until your 50th birthday. When you turn 50 you will not be able to make further deposits into your Lifetime ISA or earn any further 25% bonuses. Deposits will count towards your overall ISA limit of £20,000 for the current tax year. 

You’ll need at least £10 to open your account. If you are transferring your Lifetime ISA to us, please do not send in any further payments until we have confirmed receipt of your transferred Lifetime ISA funds.

Taking money out

You can withdraw money from your Lifetime ISA if you’re:
  • buying your first home
  • aged 60 or over
  • terminally ill, with less than 12 months to live
Up until Monday 5th April 2021 you will incur a 20% Government withdrawal charge. After this date, you will incur a 25% Government withdrawal charge.

You can transfer funds in full to another Lifetime ISA or account. However, this may be treated as a withdrawal and incur a government charge.

Important note: If you want to withdraw money at any other time up to Monday 5th April 2021 you’ll incur a 20% withdrawal charge. After this date, any withdrawals made after your 30-day cooling off period will have a 25% withdrawal charge. This period does not apply if you are transferring in your Lifetime ISA from another provider to us. The withdrawal charge aims to recover the Government bonus received and apply an extra charge to the original savings. This means if you treat your Lifetime ISA as a short-term savings product, you could get back less than you paid in.

Rates and account details

Find out more about the particulars of a Lifetime ISA below.

When will my interest be paid?

We’ll pay your annual tax-free interest into your Lifetime ISA on the 5th April each year. 

Here is a rough example of what you could save and get from the Government – the actual amount will be determined by the date you deposit your money and when the Government bonus is paid.

This table shows the scenario if Tuck had a Lifetime ISA for three years and solidly saved £200 a month. He would only be able to use his Lifetime ISA bonus after his account had been opened for 12 months and if he was using it for his first home or when he was 60 if he wanted to save for retirement. 

 Year Savings after full year Bonus Savings + bonus Interest (1.25%) Total savings
1 £2,400 £600 £3,000 £20.31 £3,020.31
2 £5,420.31 £600 £6,020.31 £58.07 £6,078.38
3 £8,478.38 £600 £9,078.38 £96.29 £9,174.67

Fee free mortgage advice

Buying your first home can be stressful but we're here to help you as much as we can. As a Lifetime ISA customer you're eligible for fee free mortgage broker advice from Nottingham Mortgage Services once you've held your account for a year and have at least £500 of savings. This is through our Member Rewards programme.

Nottingham Mortgage Services expert advisers will do the legwork to find you the right deal by looking at thousands of mortgages from different banks and building societies. Whilst you might not be ready to buy your first home just yet, it doesn't hurt to find out how much you could borrow. If nothing else it will help you understand how much you'll need to save for a deposit.

Call Nottingham Mortgage Services today on 0344 481 0076 and tell them you've opened a Lifetime ISA and would like some initial advice.

Current interest rates from 9 Oct 2019

Balance Tax-free p.a./AER*
£10 1.25%

Previous interest rates from 22 Aug 2018

Balance Tax-free p.a./AER*
£10 - £750,000 1.00%

The maximum you can save each tax year is £4,000. The Government will pay a 25% bonus of up to £1,000 each tax year. You can withdraw money from a Lifetime ISA to buy your first home, or at age 60. Other withdrawals will usually mean a 20% Government charge up to Monday 5th April 2021, increasing to a 25% Government charge after this date, so you could get back less that you put in. 

*We will pay your interest free of UK income tax. Your tax treatment will depend on your individual circumstances and may be subject to change in the future. The tax treatment of ISAs may also change. AER stands for Annual Equivalent Rate. It shows what the interest rate would be if the interest was re-invested in the account each year.

What is a Lifetime ISA?

Our Lifetime ISA is an account that gives you a 25% Government bonus on payments into the account each month, up to a maximum balance of £4,000 annually and you don’t pay tax on your interest.

Find out more

Savings FAQs

Scratching your head about savings? Take a look at questions that our members frequently ask us, which you might also find helpful. 

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Glossary of savings terms

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