Anyone between the ages of 18 and 39 can open a Lifetime ISA (LISA). It allows you to save up to £4,000 per year towards your first home or retirement. The state also adds a cash bonus of up to £1,000 per year.
This guide will walk you through the accounting system, including how to determine if they are right for you and how to understand the lifetime ISA rules and regulations.
To get the first-time buyer bonus you must have had your LISA open for at least one year. It's worth opening one with £1 just to keep the clock ticking.
What is a Lifetime ISA and how can it help you?
The Lifetime ISA (LISA), which allows you to save up to £4,000 per tax year for your first home or retirement, and the state will add a 25% bonus. You could receive a substantial amount of cash-free each year, up to £1,000. You can also earn interest on the money you save and it is tax-free because it's an ISA.
How the Lifetime ISA works
These are the most important pieces of information about Lifetime ISAs. These are worth reading, but it is also worth looking at depending on how you intend to use them.
- To open a Lifetime ISA, you must be at least 18 years old.
- Lifetime ISAs are tax-free for your interest or investment growth.
- In the same tax year, you can contribute to both a cash ISA and a Lifetime ISA.
- If you withdraw cash but don't use it to buy a home or retire, you'll be subject to a penalty