The Metfriendly Lifetime ISA (LISA) is designed to do one of two things – help you buy your first home, or supplement your retirement pot.
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.!) and Metfriendly also adds annual bonuses and a final bonus.
It’s important to remember however, that although the government bonus is added as you save, you will only actually keep it if you are a first time home buyer and use your LISA savings on a ‘qualifying property purchase’ (see FAQs) or don’t withdraw any of your savings until you are 60.
Lifetime ISA Key Benefits
- the government will add 25% on top of your savings – that’s up to £1,000 each year!
- Metfriendly will add an additional guaranteed annual bonus (2% until April 2018). After that, annual bonuses are as per our Lump Sum ISA, including a possible final bonus after you invest for a further 3 complete tax years
- save monthly (min £100 p.m.) or add lump sums (min £1,200 or £400 for top-ups)
- you can invest a maximum of £4,000 per year (leaving you £16,000 a year to invest in other Metfriendly ISAs)
- available to those aged 18-39, but once you’ve opened an account you’ll be able to continue to pay in contributions up to the age of 50
- no income or capital gains tax is payable on the investment growth
- your spouse is eligible too which means you could get up to £2,000 a year EXTRA from the government between you
- you can transfer money in from other ISAs too (see FAQs)
Please note, if you seek to withdraw funds from a Lifetime ISA for anything other than a qualifying house purchase (or before the age of 60, if you’re saving towards retirement) significant government penalties apply, and you may get less back than you have put in.