Lifetime ISA

If you're aged between 18-39 you can benefit from a Lifetime ISA and earn up to £1,000 per year in free cash from the Government (until your 50th birthday) to put towards your retirement or your first home. For every £4 you invest you will receive a £1 bonus. 

You can find out more about the Lifetime ISA here.

Account details

  • Branch only savings offer


  • 25% Government bonus


  • Transfers in are not accepted


  • Deposit up to £4,000 per year


  • UK residents aged 18-39


  • Earn interest tax-free


Summary table

Account name

Lifetime ISA

Interest rates (AERs)

Annual interest 1.00% tax-free p.a./AER*

Tax status

Tax-free

Conditions for bonus payments

25% Government bonus, pay in up to £4,000 per year, only subscribe to one Lifetime ISA, available to customers aged 18-39

Withdrawal arrangements

25% withdrawal charge unless for an eligible reason as defined by HMRC

Access

Branch

Additional information

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

Key product information

Download key product information

Want to discuss one of our savings products?

Visit a branch or call our customer service team to find out more about our accounts

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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  • Rates & account details
  • Managing your account
  • Opening an account

Your interest


We will pay your annual tax-free interest into your Lifetime ISA on 5 April each year.

Every April, we’ll send you a statement telling you how much interest you’ve earned, the rates that have applied to your account over the last year and the current rate of interest.

Paying money in


Customers may deposit up to £4,000 each year. This count towards your £20,000 ISA allowance for this tax year.

The minimum amount to open an account is £10 in cash.

Transfers in from other ISAs including another Lifetime ISA are not permitted.

Taking money out


Penalty-free withdrawals include:
  • the purchase of your first property (you must have held the account for more than 12 months) 
  • once you reach your 60th birthday
  • you are diagnosed with a terminal illness and has less than 12 months to  live (evidence required) 
  • in the event of your death
For any other withdrawals (including transfers out to a non-Lifetime ISA product) after your 30 day cooling-off period a 25% withdrawal charge will be applied. This means that, where the withdrawal charge applies, as well as paying back the Government bonus payments, you will also lose some of your own savings and receive back less than you invested.

How to open


To open an account you must:
  • Be a UK resident
  • Saving for your retirement or your first home
  • Be aged between 18-39
  • Have £10 cash to open the account 
  • Provide us with your National Insurance number
  • Meet our ID requirements and the HMRC eligibility checks

Call your local branch and speak to one of our advisers and find out how you could benefit from a Lifetime ISA.

Use our savings calculator to find out how your savings might grow over the months.

Exclusive rewards for members

We're committed to helping you save money, buy your own home and plan for a more secure financial future - whatever challenges life throws. If you have a savings balance of at least £500, and either have held one of our savings accounts for at least the last 12 months or currently have a Nottingham Building Society mortgage, you can benefit from a range of offers.

Current interest rates from 22 Aug 2018

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

The 25% bonus is provided by the government. The Lifetime ISA can be opened by customers aged 18 up to 40 years of age that reside in the UK to either save for their first house purchase or their retirement. The product has a 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 financial year into their Lifetime ISA and the government will pay a 25% bonus on a monthly basis. 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. ISA transfers can only be conducted in branch. For full details please see our T&Cs. The 25% withdrawal charge is on everything (deposits made,bonus and interest). 

*We will pay your interest without tax taken off. It is your responsibility to declare any interest you earn over your personal savings allowance directly to HMRC. Your tax treatment will depend on your individual circumstances and may be subject to change in the future, for further information please contact HMRC. 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. Interest rates are variable unless otherwise stated.

+The net rate(s) shown assume(s) income tax at the lower rate of 20% has been taken off.

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