Lifetime ISAs guide

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  • eskbanker
    eskbanker Posts: 30,995 Forumite
    First Anniversary Name Dropper Photogenic First Post
    marmitemum wrote: »
    My daughter and her fiance have each opened a Lifetime ISA with Skipton and are currently saving monthly with them. Our intention is to make each of their amounts up to £4,000 nearer the time. Can we leave it right till the 3rd/4th April 2018 to do this?
    Yes - it makes more sense (for you and them) to save money elsewhere (with better interest than Skipton's derisory 0.5%) until then and move all the money into the LISA as late as possible before the end of the tax year.
  • snowqueen555
    snowqueen555 Posts: 1,521 Forumite
    Name Dropper First Anniversary Combo Breaker First Post
    I am getting mixed messages about what I can transfer in with regards to th HTB ISA. Some websites are saying anything in the 17/18 can be subscribed, and other websites are saying only the amount you have up to April 2017 is eligible, otherwise it will count as part of the £4k limit.
  • Ed-1
    Ed-1 Posts: 3,891 Forumite
    First Anniversary Name Dropper First Post
    snowqueen555 wrote: »
    I am getting mixed messages about what I can transfer in with regards to th HTB ISA. Some websites are saying anything in the 17/18 can be subscribed, and other websites are saying only the amount you have up to April 2017 is eligible, otherwise it will count as part of the £4k limit.

    You can transfer in all or part of anything from a H2B ISA, but anything paid into the H2B ISA after 5th April 2017 counts against the £4k LISA limit. Anything paid into the H2B ISA before 6th April 2017 doesn't.
  • jpuphill
    jpuphill Posts: 28 Forumite
    edited 9 August 2017 at 3:54PM
    CAN ANYBODY HELP??

    I can see that AJ Bell have a LISA but it isn't on the MSE page - does anybody know where I can find a comprehensive list of all LISA accounts so I can compare the platform fees? Are there better deals out there that aren't on MSE?

    Currently AJBell looks to be the cheapest platform at 0.25% vs HL @ 0.45%, and it's features say that soon you will be able to transfer in the H2B Isa as well, hopefully 'soon' means before April
  • gordy010
    gordy010 Posts: 5 Forumite
    Very basic question about when you're 50 years old with a LISA....

    I understand that after the age of 50 the government bonus will not be payable on what you add to the ISA, however are you still able to add yourself (without the bonus) between the ages of 50 and 60?

    The alternative of the ISA basically sitting there doing nothing for 10 years seems strange to me?!?

    Thanks
  • Ed-1
    Ed-1 Posts: 3,891 Forumite
    First Anniversary Name Dropper First Post
    gordy010 wrote: »
    Very basic question about when you're 50 years old with a LISA....

    I understand that after the age of 50 the government bonus will not be payable on what you add to the ISA, however are you still able to add yourself (without the bonus) between the ages of 50 and 60?

    The alternative of the ISA basically sitting there doing nothing for 10 years seems strange to me?!?

    Thanks

    You can't pay new money in after age 50 but you can still transfer between LISAs.
  • greenglide
    greenglide Posts: 3,301 Forumite
    First Anniversary Combo Breaker Hung up my suit!
    The alternative of the ISA basically sitting there doing nothing for 10 years seems strange to me?!?
    But it isn't "sitting there doing nothing for 10 years". It remains invested (using a cash LISA for this would be madness) and the way in which it is invested can be changed to reflect changes in the future.

    Personally I have S&S ISAs with multiple providers and only one has had new money subscribed over the last couple of years. It is what you expect.
  • Rowbo
    Rowbo Posts: 72 Forumite
    First Post First Anniversary Combo Breaker
    Hi there, I'm planning to open a LISA this month (40 in November so id better get on with it). I am planning to go with AJ Bell as they currently look the cheapest with hopefully a Vanguard lifestyle fund. I'm very new to this having never invested anything before. We are happy to take a bit of risk but maybe not the highest risk. Am I thinking along the right lines??
    Also, I have no clue how the fees compare if you pay in monthly or in a £4000 lump sum? Am I right in thinking that monthly is better to spread out the risk of buying at a high price? - please excuse my terminology! Or would I be better saving elsewhere and putting the £4000 in at the end of March each year?
    I would love to hear your opinions.
    Thank you!
  • jpuphill
    jpuphill Posts: 28 Forumite
    Presumably you are saving for retirement? Generally use lump sums for fixed term saving, and regular drip feed in for investments unless you have a cash pile. The gov bonus is paid on contributions so as long as you put in 4000 each tax year you get a guaranteed 1000. The fees for buying funds are very small, platform fee is more important, AJBell certainly looks the best at the moment
  • jonny_k
    jonny_k Posts: 1 Newbie
    Heya guys, I've signed up to the Skipton lifetime ISA and hope to add in 4K by April. I've noticed it says 'From 2018/19 tax year the government will pay the bonus based on the contributions you have made each month.' Does that mean in order to get the full 1k next tax year you'd have to put in 4k as soon as the 2018/19 tax year starts? I had hoped to put the 4k in around March 2019.
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