Open a Lifetime ISA online today.

Important Lifetime ISA information

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

When you're ready to talk to an expert about mortgages, Nottingham Mortgage Services advisers will be happy to help you. They'll compare thousands of mortgages from over 60 lenders including Nationwide Building Society, NatWest, TSB, Barclays, Santander, Halifax plus many more - to find the right deal for you.

And as a LISA customer, once you've had your account for 12 months and saved more than £500, you'll be able to get this service completely free.

Talk to a mortgage broker on 0344 481 0076

Account details

  • 25% Government bonus

  • UK residents aged 18-39

  • Get free advice from trusted mortgage brokers

  • Open with £10 either online or in branch

  • Earn interest tax-free

  • Deposit up to £4,000 per year

  • Save for your first house or retirement (from age 60)

  • Providing you’re between 18 – 39 you can transfer in from a single Lifetime ISA provider (new online accounts only)

What you'll need to open an account

Make sure you have the following bits of information to hand when you start your application:
  • National Insurance number
  • Sort code and account number for the bank account you will make your first payment from
  • Your previous address if you've not lived at your current home for more than six months
  • If you are transferring from your current provider, the name of your existing Lifetime ISA provider. You must be under the age of 40 to do this.

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 1.05% 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, you can find the full list below. If you are aged between 18-39 you can transfer your Lifetime ISA funds from your existing provider via our online application process only. Unfortunately you cannot transfer an existing Lifetime ISA to us if you are aged 40 or over.

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.

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.

Why should I open an account with The Nottingham?

As well as all the benefits of holding a Lifetime ISA, saving £500 in one of our savings accounts that you've held for at least 12 months also gives you access to expert mortgage brokers at Nottingham Mortgage Services who'll search thousands of mortgages to find the deal that is right for you.

Additional information

If you are looking to use the Lifetime ISA as part of your retirement planning and 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.

1.05% 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 18-39
  • 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 have a Lifetime ISA with another provider and wish to switch to us, you can transfer all of your funds providing you are aged between 18-39 and a new Nottingham Building Society Lifetime ISA is opened online.

The following transfers is not allowed:

  • Partial transfer - you must transfer all of the funds into your new online Nottingham Building Society Lifetime ISA
  • Multiple transfers - we can only accept transfers in from a single Lifetime ISA provider
  • Transfer in to open a branch-based Lifetime ISA - the account must be opened online
  • Be aged younger than 18 or older than 40.

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.


What you'll need to open an account

Make sure you have the following information to hand when you start your application:
  • National Insurance number
  • Sort code and account number for the bank account you will make your first payment from
  • The name of your existing Lifetime ISA provider – only if you are transferring from your current provider
  • Your previous address if you've not lived at your current home for more than six months.

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 £250 a month. He would only be able to use his Lifetime ISA bonus after his account had been opened for 12 months if he was using it for his first home or when he was 60 if he wanted to save for retirement. 


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 12 Aug 2020

Balance Tax-free p.a./AER*
£10 1.05%

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.

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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