Lifetime ISA (LISA)
Save for your first home or retirement with a Lifetime ISA and receive a 25% bonus from the Government on top of the current interest rate.
What you need to know about the Lifetime ISA
- You can open a Lifetime ISA if you’re aged 18 to 39, and save up to £4,000 tax-free each year, up to and including the day before your 50th birthday. To make sure you don’t miss out because of the age limit, initial funds must be deposited at least 14 days before your 40th birthday. You will also need to make sure any initial funds are deposited in the account before your birthday.
- Your personal records must be up to date with HMRC or we may be unable to process your application in time.
- The Government will award a bonus of 25% annually (up to a limit of £1,000 each year) until you reach your 50th birthday
- Both the Government bonus and interest added to a Lifetime ISA are tax free. Please note that tax rules may change
- Your £4,000 Lifetime ISA allowance forms part of your overall £20,000 annual ISA allowance
- For every £4 you save, you receive a £1 Government bonus – you can then use this money to put towards your first home or your retirement
- If you pay in your full allowance each year between the ages of 18 and 49, you can gain a total bonus of up to £32,000
- You can withdraw from your Lifetime ISA after 12 months from your first payment in to buy your first residential home with a purchase price of up to £450,000
- For any other withdrawals before the age of 60 a 25% government withdrawal charge applies, meaning you’d get back less than you paid in. Read more about withdrawal charges in the Additional Information section below.
Find out more in our Lifetime ISA Frequently Asked Questions.