A LISA helps you save towards a first home or retirement with a government bonus and tax-free interest. Your savings are locked in until you’re ready to buy or retire.

Tax-free savings

A LISA counts towards your £20,000 ISA allowance, so you can use it to put money away tax-free.

Savings limit

Save up to £4,000 per tax year in your LISA. Earn £1,000 in bonuses plus interest. Each year you save, you’ll receive a generous 25% bonus.

Government withdrawal fee

If you take out money before age 60 that’s not used to buy your first home, you’ll need to pay a 25% government withdrawal fee.

When to withdraw

Your savings, including your bonus and interest, will be available for your first home 12 months after opening your account. This encourages you to keep saving.

UK residents aged 18–39 can open a LISA if saving towards a first home or retirement. Keep adding money and earning bonuses until you turn 50.

You’re a first-time buyer if you have never owned (or part-owned) a property before, even outside the UK. Those who have inherited property aren’t classed as first-time buyers.

You can use your LISA for your first home or retirement if you’re 60 or over. If you don’t meet these criteria and want to take out money, you’ll have to pay a 25% Government withdrawal charge. If you need to dip in and out of your account, consider one of our instant access accounts instead.

You can have more than one LISA, but there isn’t any point because you can only pay into one each financial year (6th April - 5th April). The Government bonus stays the same, too, but the interest rate may differ from provider to provider.

Open as many ISAs per year as you please. Remember that the total balance combined must be below the £20,000 ISA allowance. With our LISA, you can save up to £4,000 per year.

Any ISA, including our LISA, is treated as an asset. So, if you get benefits or want to apply, your savings will be considered when deciding on your benefits. Similarly, if you have any debts, your ISA savings could be used as part of debt recovery.

Your total ISA allowance each tax year is £20,000. You can save up to £4,000 of this with a LISA, but it can be affected if you save more in your other ISAs. For example, if you were to save £16,001 in another ISA, you could only save £3,999 in your LISA.

You’ll need the following info:

• Proof of address for the last six months.
• National Insurance number.
• Mobile phone number.
• Bank account details.
• Email address.

A LISA is helpful to anyone over the age of 18. Students can get a great head start after college. They can do so if they’re not looking to withdraw savings for anything other than a first home or retirement. An instant access account may be better for more flexible savings. 

Parents can’t open a LISA for you. LISA holders must open an account for themselves. Those under 18 interested in saving can explore other options, but we don’t currently offer an under-18s savings account.  

Opening a LISA is easy. After you’ve read our Lifetime ISA product page and terms and conditions, you can open an account online. If you need any advice before opening your LISA, contact our customer service team.

We offer full transfers from a single LISA provider for applications to our LISA of any balance.

Save up to £160,000 for retirement – and that’s without interest. To work this out, we set your age to 18 and assume you’ll pay the maximum £4,000 until age 50, without taking out any cash or using it towards your first home.

You can find out the tax-free interest rate of the Lifetime ISA. You’ll get this on top of your savings and the government bonus.

Your interest earned won’t be taxed depending on your circumstances, but tax rules around ISAs can also be changed. AER stands for Annual Equivalent Rate, which shows the interest rate and whether it will be reinvested in the account each year. Unless it says otherwise, interest rates are variable.

The future isn’t always certain, so you can close your account anytime. If you close it within 30 days of opening, you won’t have to pay withdrawal charges. But if you’re transferring to us from another LISA provider, the 30 days won’t count.

Save up to £4,000 per tax year in your LISA and earn up to £1000 in Government bonuses plus interest.

Once your LISA has been open for 12 months, use the cash saved towards a new home with a property price up to £450,000. Your conveyancer will take care of everything. Find out how it works in our handy guide about how to use your Lifetime ISA to buy a home.

You and your partner can each open a LISA and cash in the 25% Government bonus. You’ll both need to meet the account requirements. You can’t have a joint LISA, which works out better because you can each get the bonus.

Don’t worry – simply pop the money back. Again, your conveyancer will handle everything for you.

A LISA is an excellent way to save for your future. Of course, everyone’s circumstances are different, so it’s best to speak to a financial advisor who can find the best option for you. If you’re already a member, you can book a free session with our trusted partner, Wren Sterling.

You can check the details and terms and conditions for our Lifetime ISA here. You can also visit the Government’s website for even more about LISAs. 

Use your LISA at age 60 and beyond. If you’re not ready to give up working, leave the money there and let it earn interest. You won’t be able to add to it, but it’s ready and waiting whenever you need it.

If you pass away, your LISA and any interest and bonuses will be passed on to your beneficiaries.

It’s up to you to decide which provider offers the best deal. But we’re open and honest about the ins and outs of finance. And we make money easy to manage with our app. If you need advice or information, try our help centre or call our customer service team, who are always on hand.