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    • Jack98
    • By Jack98 16th Jul 17, 12:11 AM
    • 1Posts
    • 0Thanks
    Jack98
    how does the Lifetime isa's work?
    • #1
    • 16th Jul 17, 12:11 AM
    how does the Lifetime isa's work? 16th Jul 17 at 12:11 AM
    I've been saving in help to buy for over a year now and have just over £4000 (£3250 in march) and have 4% interest. i have just heard about lifetime isa.
    i wont be buying a home in a few years as im only just going to uni this year. ( im 19)

    1. if i open a lifetime isa account is it worth transfering all my money from the help to buy isa as it would mean losing the high interest rates. ?
    2. can i transfer my money into the lifetime isa but also keep the help to buy for the high interest rates?
    3. also if i transfer £3250 from my help to buy can i only then put £750 to put it up to £4000 or does this not matter and i can put £4000 as well as £3250 = £7250 in first year?
    4. if i transfer money all the money in march 2018 will i get the full bonus

    thanks for helping
Page 1
    • Ed-1
    • By Ed-1 16th Jul 17, 9:34 AM
    • 1,940 Posts
    • 1,038 Thanks
    Ed-1
    • #2
    • 16th Jul 17, 9:34 AM
    • #2
    • 16th Jul 17, 9:34 AM
    I've been saving in help to buy for over a year now and have just over £4000 (£3250 in march) and have 4% interest. i have just heard about lifetime isa.
    i wont be buying a home in a few years as im only just going to uni this year. ( im 19)

    1. if i open a lifetime isa account is it worth transfering all my money from the help to buy isa as it would mean losing the high interest rates. ?
    2. can i transfer my money into the lifetime isa but also keep the help to buy for the high interest rates?
    3. also if i transfer £3250 from my help to buy can i only then put £750 to put it up to £4000 or does this not matter and i can put £4000 as well as £3250 = £7250 in first year?
    4. if i transfer money all the money in march 2018 will i get the full bonus

    thanks for helping
    Originally posted by Jack98
    1. I'd transfer the balance as it stood on 5th April 2017 only as this doesn't count towards the £4000 LISA limit.
    2.Yes - but only if you transfer part of it. If you transfer the full balance the H2B ISA is likely to be closed.
    3. No - you can put in another £4000 as well as transfer the balance of the H2B ISA as it stood on 5th April 2017.
    4.Yes.
    • psuc3c
    • By psuc3c 16th Jul 17, 9:52 AM
    • 1 Posts
    • 0 Thanks
    psuc3c
    • #3
    • 16th Jul 17, 9:52 AM
    • #3
    • 16th Jul 17, 9:52 AM
    Hi Jack98,

    I'm in a similar position to you, and agree with Ed-1 by waiting until the end of the tax year to transfer the H2B ISA over to a LISA with an extra £4000 so I can gain the better interest rates through H2B. One thing to be aware of is that there is a penalty to withdrawing cash out of a LISA . There is more info about LISAs on MSE website.
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