Lifetime ISA
If you’re aged between 18 and 39 years, with a Lifetime ISA you 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 - 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.
Find out the details of the Lifetime ISA below.
Account details
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25% Government bonus
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UK residents aged 18-39
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Earn interest tax-free
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Transfers in are not accepted
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Available online and in branch
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Deposit up to £4,000 per year
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Open with £10
Summary table
Account name
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Lifetime ISA
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What is the interest rate and is it fixed?
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The annual interest rate is variable and currently set at 1.25% p.a./AER*. The annual interest is tax-free
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Will I be taxed on the interest?
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No. The interest you’ll receive will be paid free of UK income tax, however, the tax treatment of ISAs could change
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How do I get the bonus payments?
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The Government will pay a 25% bonus on your contributions, up to a maximum of £1,000 a year
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Can I withdraw my money?
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Any withdrawals within the first 12 months of your first payment into a Lifetime ISA will incur a 25% Government withdrawal charge which mean you could get back less than you paid in. After that, 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
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How can I open a Lifetime ISA with The Nottingham?
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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
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What would my balance be after a year of saving?
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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
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Must my first house meet any criteria to be eligible?
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Yes. You need to have had your Lifetime ISA open for at least 12 months before you can withdraw money to purchase a house and the house price must not exceed £450,000 to be eligible. Please read our key features document to find out more about the criteria
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Additional information
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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)
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Key product information
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To find out more, download our key product information guide for our online Lifetime ISA or our in-branch Lifetime ISA
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Apply for an account
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