The Lifetime ISA (LISA)

The LISA is designed to help you save for your first home and retirement.

You can save up to £4,000 a year tax-free to which the Government will add an impressive 25% (that’s up to £1,000 p.a.). We also add annual bonuses and a final bonus.

After 12 months, you can withdraw funds without a charge to buy your first home. Withdrawals from a Lifetime ISA within the first 12 months of your first payment incur a 25% government charge, so you’ll get back less than you put in.

For other withdrawals before age 60, the charge still applies unless you’re diagnosed with a terminal illness. From age 60, you can access your pot, tax and penalty free.

Key benefits

• save up to £4,000 a year tax-free
• the Government will add 25% on top – that’s up to £1,000 each year!
• available to those aged 18-39
• continue to pay in up to age 50 (even after buying your first home) and get the 25% government bonus
• spouses are eligible too – get up to £2,000 a year EXTRA between you
• transfer money in from other ISAs

Reach your savings goal faster

By selecting the Escalator option, your monthly payments can start from just £50 and will then automatically increase (by minimum £10) in April each year until you tell us to stop.

Note: The most you can contribute is £333 per month, the equivalent to the maximum monthly ISA limit of £4,000 over 12 months.

Competitive returns

> Take a look at a graph to see how your ISA can achieve growth through saving monthly.

We reserve the right to also apply a Market Value Reduction (MVR) so that the value when you cash in more fairly reflects our performance over the period of investment.

What is a ‘qualifying property purchase’? 

To avoid the 25% government charge on your LISA withdrawals they must be used for a ‘qualifying property purchase’.

• 12-month rule: You need to have your LISA open for at least 12 months before you can use it to buy your first home.
• Property price limit: The property you buy must be worth up to £450,000.
• First-time buyer: You must not have previously owned a property in the UK or anywhere else.
• Mortgage required: You must be using a mortgage to buy the property.
• No buy-to-let: You can’t use a LISA to buy a property to rent out.