Lifetime ISAs guide

Thank you for all your input into this thread guys, it helped me make a decisions and take the step today to open a Nutmeg stocks and shares LISA. (my first ever savings account, late starter at 36 yrs old)

I am planning to hold it for 3-5 years, depending on how my other saving plans go and then step into the world of a first time buyer, to try and get on the property ladder.

Mattmuzz wrote: »

I am wondering, when the bonus begins to be paid monthly in the second year. Does this mean we need to pay in the maximum contribution at the start of the 2nd year period or make monthly contributions to ensure the full 1000 bonus for the 2nd year as well? Or can will still lump it in at the end?

My understanding is that you can choose to do any of the above and that the 25% bonus will be paid on any contributions made in any given month. So if you pay £4K in on 6 April 2018, you'll get a £1K bonus added to your account in May 2018, or if you pay in £4K on 5 April 2019 you'll get the £1K by 19 April 2019. Or if you pay in £300 every month then you'll receive £75 bonus every month, etc....

Tom_Hendo wrote: »

Any news on anyone else offering a cash ISA? I still dont want to open one with the current providers (S&S options). I know skipton say theres is due for June 2017 but thats all ive heard.

Having answered you when you've asked this before in March and April, there's unfortunately no change in the reply, in that the MSE article I've pointed you to previously still doesn't show any further entrants (when they've committed to update it when there's news) and to the best of my knowledge there haven't been any reported on the forum either....

The bonus is paid at 25% of contributions, what happens after the contributions have been made (e.g. interest or growth) is irrelevant, so if you contribute £4K you'll receive a bonus of exactly £1K at the end of the claim period, no more and no less....

binaryuniverse wrote: »

eskbanker wrote: »

My understanding is that you can choose to do any of the above and that the 25% bonus will be paid on any contributions made in any given month. So if you pay £4K in on 6 April 2018, you'll get a £1K bonus added to your account in May 2018, or if you pay in £4K on 5 April 2019 you'll get the £1K by 19 April 2019. Or if you pay in £300 every month then you'll receive £75 bonus every month, etc....

I am hoping it's this. Would mean I can leave the money in some other, higher interest earning account, and then lump it all in, right at the end of the tax year.

Perhaps worth noting that my comment related to the 2018/19 year, when bonus payments will be aligned with contributions and paid the following month.

Deferring LISA contributions to the end of the tax year makes sense this (2017/18) year because the bonus is only payable at the end regardless of when contributions are made, but from next year there'll be less of a case to do this because you'll be able to earn interest (or investment growth) on the bonus as soon as it's paid in.