Lifetime ISAs guide
Comments
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So I have just noticed that as of today Skipton have removed from their LISA info page any mention of it being released in June. If they are backtracking on their planned release date this is very annoying as I have been delaying getting the "clock ticking" with a S&S LISA on the basis a cash one was going to be available this month
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The home page of their web site says "We’re the first savings provider on the high street to confirm we’ll be offering people aged between 18 and 39 a Cash Lifetime ISA from June. ".
Of course, seeing as how it is June now, they may have decided that the statement requires amending.
They also may be concerned at the idea of being the only Cash LISA provider and being bombarded with applications from people who are opening it solely to start the clock ticking and intend to transfer away very soon.0 -
So fortunately signed-up for any news re.Skipton cash LISA previously and have been invited for early application to the account... However, there's little information available about it via MSE at this time (being that it isn't 'officially' available until Thursday...) so if anyone is able to assist that'd be great ...
It appears 'Exit fees' from the Skipton LISA will be just £6 (whilst this is not zero like my Nutmeg LISA... It still appears good compared to the other existing S&S LISAs at £25) -- is it worth waiting for other cash LISAs to crop up (that may or may not incurr similar or higher exit fees?) or biting the bullet and getting involved ...? What are the benefits of a cash LISA vs a S&S LISA other than the expulsion of any risk? Just trying to decide whether it would be worth moving to the Skipton cash LISA from my Nutmeg LISA at this stage in the game or waiting for other potential offerings from other providers that may have better terms (for example, higher interest rate than 0.5% and perhaps zero exit fees... Realise it's only £6 but if I wanted to move from the Skipton LISA to a preferential LISA in future those fees become reality and far outweigh the interest rate for instance!)
Thanks in advance!0 -
It doesn't seem that there's any enthusiasm in the market for cash LISAs so personally I wouldn't expect significant competition in the near future, as providers have had plenty of time to come up with offerings by now. However, if you've already opened a Nutmeg S&S LISA with a token amount to get the clock ticking, I'd keep the rest of your £4K elsewhere until closer to the end of the tax year and see what the landscape looks like then, given the bonus not being paid until April 2018.is it worth waiting for other cash LISAs to crop up (that may or may not incurr similar or higher exit fees?) or biting the bullet and getting involved ...?
It's a commonly-expressed myth that cash-based holdings have no risk, but they simply replace investment risk with inflation risk, shortfall risk, etc. So (excluding bonus) a Skipton cash LISA will definitely earn 0.5% in a year (well below inflation) whereas a S&S LISA might lose money or alternatively earn significantly more than 0.5%.What are the benefits of a cash LISA vs a S&S LISA other than the expulsion of any risk?0 -
It doesn't seem that there's any enthusiasm in the market for cash LISAs so personally I wouldn't expect significant competition in the near future, as providers have had plenty of time to come up with offerings by now. However, if you've already opened a Nutmeg S&S LISA with a token amount to get the clock ticking, I'd keep the rest of your £4K elsewhere until closer to the end of the tax year and see what the landscape looks like then, given the bonus not being paid until April 2018.
It's a commonly-expressed myth that cash-based holdings have no risk, but they simply replace investment risk with inflation risk, shortfall risk, etc. So (excluding bonus) a Skipton cash LISA will definitely earn 0.5% in a year (well below inflation) whereas a S&S LISA might lose money or alternatively earn significantly more than 0.5%.
Quite! ...and precisely my predicament !
And absolutely - barely any other hints of offerings even ... I meant anything up to next March really though (as ideally looking to buy in late May when my 12month clock has ticked on 1st May 2018...) and I will definitely be building up my 4K nest egg in a better account before dropping it into (whatever) LISA I have as of March 2018 ...
For £6 exit fees (Skipton) it's probably worth getting involved for the FSCS protection (even for such a small sum) and the avoision of risk of my investment going down .... Doubt any other LISAs introduced will offer anything amazing over 0.5% really0 -
Actually, Skipton mention paying the 17/18 bonus in May 2018 -- is this the same across the board ? As I notice you mentioned April 18 above but this could just be an error.....0
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According to the ISA rules, all ISA managers must claim bonuses within 14 days of the end of the claim period, where the first such period ends on 5 April 2018 and then monthly thereafter - 9B.24 states:Actually, Skipton mention paying the 17/18 bonus in May 2018 -- is this the same across the board ? As I notice you mentioned April 18 above but this could just be an error.....
I can't find any definitive HMRC statement about how long it takes from claim to payment but perhaps it's another 14 days since Skipton say "The government has indicated the bonus will be paid within 28 days of 6 April 2018, and you’ll start earning interest on the bonus from the date we receive it from HMRC".For 2017/18, other than on death or terminal illness of the investor, no government bonus may be claimed on qualifying additions until the end of year claim - which is due no later than 14 days after the claim period (i.e. 14 days after the end of the tax year).0 -
Can't decide whether to go ahead and apply for the Skipton Cash Lifetime ISA or go with the Nutmeg one.... Decisions, decisions....0
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Hope you can help:
If I open a LISA today with £1, then a week before the bonus is calculated/paid put in £4k, what bonus would I get? Would it be 25p or £1k?
The reason I ask is that I'd like to max the bonus, but keep the money elsewhere (higher interest) until that point.
What happens the following year, can I wait til the bonus paying deadline again?
I'm planning on opening the Skipton LISA, but am unsure on how much to put in. I hope to purchase a house in just over a year.0 -
Hope you can help:
If I open a LISA today with £1, then a week before the bonus is calculated/paid put in £4k, what bonus would I get? Would it be 25p or £1k?
A bonus of £1k and don't forget your interest of 0.5p!
What happens the following year, can I wait til the bonus paying deadline again?
See GG reply below0
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