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  • FIRST POST
    • MSE Helen Saxon
    • By MSE Helen Saxon 16th Mar 16, 5:06 PM
    • 75Posts
    • 42Thanks
    MSE Helen Saxon
    Lifetime ISAs guide
    • #1
    • 16th Mar 16, 5:06 PM
    Lifetime ISAs guide 16th Mar 16 at 5:06 PM
    Hi!

    This is the discussion thread for the



    Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.


    Thanks folks,
Page 35
    • NevvyC
    • By NevvyC 7th Jun 17, 3:11 PM
    • 37 Posts
    • 1 Thanks
    NevvyC
    The bonus isn't paid in monthly installments unless you pay your deposits into the LISA in monthly installments. Rather it's paid monthly based on what you put in the month before. So instead of getting £83.33 bonus in June, you'll get £1,000.
    Originally posted by Ed-1
    I'm having the same quandary now...! As I opened a Nutmeg S&S LISA (to get that clock ticking ASAP...) which required £100, and whislt it's only 100 could get better return under the Nutmeg than moving to Skitpon for 0.5% (a whole 50p!) decisions, decisions...
    • Dom_Fletch89
    • By Dom_Fletch89 7th Jun 17, 3:20 PM
    • 22 Posts
    • 0 Thanks
    Dom_Fletch89
    As stated earlier, I've just opened a Lifetime ISA with Skipton Building Society. I also have a Help to Buy ISA with Santander which I have just deposited into at the start of June. I will be depositing a further £600 into it on June 30th so I will have saved the max £1,200 in the first month.

    From reading previous comments am I right in thinking that it would be best to continue depositing £200 a month into the Help To Buy ISA and then transferring that amount into the LISA in March 2018? I will then obviously top up the remaining amount to take the total in the LISA to £4000.

    Alternatively, am I best off contributing £200 a month in to the Help to Buy ISA and at the same time saving into the LISA to reach the max £4k in that by the end of the current tax year?

    Any help is appreciated please
    • Guru86
    • By Guru86 7th Jun 17, 6:39 PM
    • 226 Posts
    • 24 Thanks
    Guru86
    Ok about to open a LISA looking at Hargreaves Lansdown rather than cash ISA. Paying the minimum £25 a month as a little extra as can't put anymore in work pension - plan to increase over time.

    I've looked at Funds and think the vanguard lifestragety 80% - I'm worried about the risk as never done s&s before but due to length of time money going to be in there think this is best route as time to recover if dips. This the right idea?

    Also when I open the LISA with them do I deposit the first monthly payment then assign the fund, then do I have to assign the money each month to the fund or will it do it automatically?
    • pete900
    • By pete900 7th Jun 17, 8:57 PM
    • 1 Posts
    • 0 Thanks
    pete900
    Does anyone know if I can transfer my stocks and shares LISA into a cash LISA or do I have to wait until the new tax year?

    Was hoping to change from nutmeg to skipton now.
    • Ed-1
    • By Ed-1 7th Jun 17, 9:44 PM
    • 1,978 Posts
    • 1,057 Thanks
    Ed-1
    Does anyone know if I can transfer my stocks and shares LISA into a cash LISA or do I have to wait until the new tax year?

    Was hoping to change from nutmeg to skipton now.
    Originally posted by pete900
    It's not a case of transferring from a stocks and shares LISA to a cash LISA in law, but simply a lifetime ISA to a lifetime ISA. So yes you can.
    • bmouthboyo
    • By bmouthboyo 8th Jun 17, 10:28 AM
    • 69 Posts
    • 4 Thanks
    bmouthboyo
    Sign up was smoother than I expected, accounts for me and my wife all setup in 20 minutes

    £4000 free from the government a year from now is not to be sniffed at!

    Can I double check that although the Government will pay 25% in at the end of the tax year, I cannot use it for a home until the actual account has been open a year? i.e 8th June 2018?
    Last edited by bmouthboyo; 08-06-2017 at 10:37 AM.
    • martinlewisjunior
    • By martinlewisjunior 8th Jun 17, 3:25 PM
    • 26 Posts
    • 1 Thanks
    martinlewisjunior
    Sign up was smoother than I expected, accounts for me and my wife all setup in 20 minutes

    £4000 free from the government a year from now is not to be sniffed at!

    Can I double check that although the Government will pay 25% in at the end of the tax year, I cannot use it for a home until the actual account has been open a year? i.e 8th June 2018?
    Originally posted by bmouthboyo
    It's only £2000, you can put in £4000 into each LISA and get a £1000 from it

    unless it was a typo
    • eskbanker
    • By eskbanker 8th Jun 17, 3:34 PM
    • 5,466 Posts
    • 5,270 Thanks
    eskbanker
    It's only £2000, you can put in £4000 into each LISA and get a £1000 from it

    unless it was a typo
    Originally posted by martinlewisjunior
    It's £4K per tax year, so £1K each in 2017/18 and then another £1K each at the start of 2018/19 (when such bonuses will be paid monthly), totalling £4K of bonuses in the year to June 2018....
    • Samlouisec99
    • By Samlouisec99 8th Jun 17, 7:47 PM
    • 1 Posts
    • 0 Thanks
    Samlouisec99
    I'm looking at opening a LISA and using it to help me buy a property. I'm planning on opening one now and just depositing £1 and then in march 2018 putting £3999 which will then get me my first £1000 bonus.

    If I was looking at buying in July 2018 and put another 4000 into the LISA before would I then have 2000 in total in a bonus towards the deposit? Or do I have to wait a certain amount of time after depositing the second £4000?
    • Guru86
    • By Guru86 9th Jun 17, 9:26 AM
    • 226 Posts
    • 24 Thanks
    Guru86
    Ok about to open a LISA looking at Hargreaves Lansdown rather than cash ISA. Paying the minimum £25 a month as a little extra as can't put anymore in work pension - plan to increase over time.

    I've looked at Funds and think the vanguard lifestragety 80% - I'm worried about the risk as never done s&s before but due to length of time money going to be in there think this is best route as time to recover if dips. This the right idea?

    Also when I open the LISA with them do I deposit the first monthly payment then assign the fund, then do I have to assign the money each month to the fund or will it do it automatically?
    Originally posted by Guru86
    Any advice?
    • eskbanker
    • By eskbanker 9th Jun 17, 11:52 AM
    • 5,466 Posts
    • 5,270 Thanks
    eskbanker
    I'm looking at opening a LISA and using it to help me buy a property. I'm planning on opening one now and just depositing £1 and then in march 2018 putting £3999 which will then get me my first £1000 bonus.

    If I was looking at buying in July 2018 and put another 4000 into the LISA before would I then have 2000 in total in a bonus towards the deposit? Or do I have to wait a certain amount of time after depositing the second £4000?
    Originally posted by Samlouisec99
    You can pay in a second £4K right at the start of the new tax year on 6 April 2018 (or any time up to 5 May 2018) and you'd receive the 25% £1K bonus in late May (or maybe early June).
    • eskbanker
    • By eskbanker 9th Jun 17, 12:12 PM
    • 5,466 Posts
    • 5,270 Thanks
    eskbanker
    Ok about to open a LISA looking at Hargreaves Lansdown rather than cash ISA. Paying the minimum £25 a month as a little extra as can't put anymore in work pension - plan to increase over time.

    I've looked at Funds and think the vanguard lifestragety 80% - I'm worried about the risk as never done s&s before but due to length of time money going to be in there think this is best route as time to recover if dips. This the right idea?

    Also when I open the LISA with them do I deposit the first monthly payment then assign the fund, then do I have to assign the money each month to the fund or will it do it automatically?
    Originally posted by Guru86
    Any advice?
    Originally posted by Guru86
    Investing is generally regarded as a better bet than cash-based saving when intended for the long term, and yes, you can't go far wrong with a leading global multi-asset fund like VLS80 as a starting point.

    I don't have any direct experience of HL but believe that they offer a £25 monthly regular savings option which would take care of everything for you once you'd made the decision about the fund.
    • graced17
    • By graced17 9th Jun 17, 12:20 PM
    • 1 Posts
    • 0 Thanks
    graced17
    Go for Skipton or wait for better interest rate
    Hi


    I'm hoping to open a lifetime ISA with a view to using it to buy my first house.


    At the moment, as far as I'm aware, it is only Skipton that are offering the non stocks and shares LISA but the interest rate being offered is only 0.5%. I am aware that after the 2017/18 tax year, there would be a penalty for withdrawing the money. So, am I better off opening with Skipton now, settling for the low interest rate (and possibly withdrawing it before the end of the tax year if a better offer comes up). I am worried that if a better offer doesn't come up in time, I will be stuck with Skipton and unable to change without penalty at a later date.


    Or should I just hold out until another provider comes about?


    Hope this makes sense... thanks in advance!
    • Woodaaay
    • By Woodaaay 9th Jun 17, 12:50 PM
    • 3 Posts
    • 3 Thanks
    Woodaaay
    Skipton Fine Print
    just be careful that in the fine print for the Skipton LISA it says they reserve the right to remove the facility to transfer into the LISA so there is a risk that if you wait, you wont be able to do it
    • eskbanker
    • By eskbanker 9th Jun 17, 12:51 PM
    • 5,466 Posts
    • 5,270 Thanks
    eskbanker
    Don't hold your breath waiting for another provider, there's no sign of any interest in the market, as per http://www.moneysavingexpert.com/news/savings/2017/06/first-cash-lifetime-isa-now-available-but-its-likely-to-be-the-only-one-for-a-while

    The only reason to open one now is to start the clock ticking, in that you have to have the account open for a year before you can use it for a property purchase - if you're not likely to be buying before March 2019 then you can just keep your money elsewhere (earning more than 0.5%) and open a LISA closer to the end of the tax year when it may be clearer what the options are.
    • Chris Dean
    • By Chris Dean 9th Jun 17, 1:14 PM
    • 1 Posts
    • 1 Thanks
    Chris Dean
    Good job I held my breath
    Foresters Friendly Society have just launched a product with a 1.75% annual interest rate bonus plus extra with profits bonus when you withdraw the funds. that seems a better deal than cash...wonder who else will be launching.
    • Arthurian
    • By Arthurian 9th Jun 17, 2:15 PM
    • 612 Posts
    • 543 Thanks
    Arthurian
    Foresters Friendly Society have just launched a product with a 1.75% annual interest rate bonus plus extra with profits bonus when you withdraw the funds. that seems a better deal than cash...wonder who else will be launching.
    Originally posted by Chris Dean
    I got quite excited for a moment, then realised Skipton is cash, Foresters is stocks and shares.

    EDIT: from their brochure "The money you put into your Stocks & Shares LISA, together with the government bonus,
    is invested in our With Profits Order Insurance Fund, which aims to provide growth over
    5 years or more. An annual and a final bonus may be added to your LISA by Foresters.
    The value of these bonuses depend on how much profit the fund makes. The addition of
    these bonuses is not guaranteed."
    Last edited by Arthurian; 09-06-2017 at 2:21 PM. Reason: brochure quote added
    • eskbanker
    • By eskbanker 9th Jun 17, 5:45 PM
    • 5,466 Posts
    • 5,270 Thanks
    eskbanker
    Foresters Friendly Society have just launched a product with a 1.75% annual interest rate bonus plus extra with profits bonus when you withdraw the funds. that seems a better deal than cash...wonder who else will be launching.
    Originally posted by Chris Dean
    As the previous poster has correctly pointed out, the Forester LISA isn't a cash one (which is the context of the comment about not holding breath) - a quick look at the online key facts and brochure reveals info about annual charges of no less than 1.25% but nothing about "1.75% annual interest rate bonus", where did you see this?
    • Somerset La La La
    • By Somerset La La La 9th Jun 17, 7:52 PM
    • 388 Posts
    • 101 Thanks
    Somerset La La La
    How do they determine/you prove the opening date?? Is a statement enough?

    I opened an investment LISA on 6th April (Nutmeg).

    Opened a Cash LISA 6th June (was on Mailing List).

    Will transfer the Investment ISA to Skipton when I sort the forms out. Tempted to transfer it out, if somebody offers a better rate.

    But, Skipton will declare my opening date as 6/6/17. Given that nutmeg will be closed, that kills my 6/4/17 product. If I then moved it to, say, Barclays - wouldn't they think my opening date is 1/11/17 or whatever?

    Thinking for those buying imminently (I'm October next year), it might be better to keep it in one place than scrabble around for extra interest??? (Despite my instinct normally being to move for even 0.01%!)
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    • Ed-1
    • By Ed-1 9th Jun 17, 8:24 PM
    • 1,978 Posts
    • 1,057 Thanks
    Ed-1
    How do they determine/you prove the opening date?? Is a statement enough?

    I opened an investment LISA on 6th April (Nutmeg).

    Opened a Cash LISA 6th June (was on Mailing List).

    Will transfer the Investment ISA to Skipton when I sort the forms out. Tempted to transfer it out, if somebody offers a better rate.

    But, Skipton will declare my opening date as 6/6/17. Given that nutmeg will be closed, that kills my 6/4/17 product. If I then moved it to, say, Barclays - wouldn't they think my opening date is 1/11/17 or whatever?

    Thinking for those buying imminently (I'm October next year), it might be better to keep it in one place than scrabble around for extra interest??? (Despite my instinct normally being to move for even 0.01%!)
    Originally posted by Somerset La La La
    Since transferred ISAs are classed as the same ISA for HMRC reporting periods, the opening date reported is always the opening date of the first account opened which is transferred over with the ISA in the back end process.
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