Lifetime ISAs

About Lifetime ISAs

A Lifetime ISA (Individual Savings Account) is an account that the government tops up by 25% of all deposits you make, up to a bonus of £1000 per tax year. We've summarised the key things you need to know about the Lifetime ISA below:

• You can earn a maximum bonus of £1000 each tax year by depositing £4000 into you LISA.
• You must be over 18 but under 40 to open a Lifetime ISA.
• You can contribute towards your LISA until you are 50.
• You can only withdraw your money for your first house purchase up to £450,000 or after the age of 60.
• All other withdrawals are subject to a 25% withdrawal fee, meaning you are likely to receive less than you put in.
• All earnings within your Lifetime ISA are exempt from tax.

Types of Savings Accounts

A Cash Lifetime ISA simply saves your money as cash. You will receive your 25% bonus from the government on all deposits up to £1000.

A Stocks and Shares Lifetime ISA invests your money instead of earning interest. The amount you could earn is not fixed and you could receive back less than you put in.

You will still receive your 25% bonus from the government on all deposits up to £1000.