Lifetime ISAs guide

epm-84

Ed-1 wrote: »

Who did you transfer the H2B ISA from?

Nationwide.

epm-84

Wings_of_Ambition wrote: »

Cheeky extra question
After a LISA is open, could I also continue paying into my HTB ISA (on the understanding I won't be claiming the HTB bonus)... I ask as the 4% interest rate on my HTB ISA is better than my current account?

That might be possible. However, remember if you have a lump sum ready to pay in then you may get more interest with a lower interest account. For example, 2% interest on a £2400 balance for a full year is roughly the same as 4% interest on an account which starts with £200 and increases by £200 a month until it gets to £2400.

eskbanker

epm-84 wrote: »

For example, 2% interest on a £2400 balance for a full year is roughly the same as 4% interest on an account which starts with £200 and increases by £200 a month until it gets to £2400.

While that's true as stated, in the latter case it would usually be practical to earn interest elsewhere on the balance yet to be drip-fed into the 4% account (given the lump sum to start with), so the total return would typically be better in the latter scenario.

N1ckS

Just a quick note to say I had a good experience recently signing up to the OneFamily LISA via TopCashback. I deposited £250 and received a £30 Amazon gift card the following day with £42 cashback tracked and confirmed soon afterwards.

This might not be the correct account for everyone but I plan to keep the account open long-term without any further deposits and it's a nice little incentive for those with some spare cash.

Alexland

Yes but over the long term the OneFamily AMC of 1% will clawback the incentives if you made additional contributions. If you don't make extra contributions then the LISA opportunity is wasted.

N1ckS

Thanks for the feedback, yes, it is just for a single deposit. I guess that as an existing homeowner with a pension the LISA is not really aimed at/suitable for me?

My understanding is that if I wanted to put more money in a LISA with lower fees I could open another account with a different provider in the new tax year?

Hopefully in the long-term, 25 years+, that £250 should outperform a savings account.

System

epm-84 wrote: »

I've noticed a different scenario. I've paid in £2000 to my Help2Buy ISA this tax year and £1 in to the Lifetime ISA and in Skipton online (now the transfer has completed) it says I have £17905 of my ISA allowance left (unless I've used some of that with another provider.) The £94 difference is not the total interest paid in to my Help2Buy ISA this financial year but it seems to be the total interest incurred on my Help2Buy ISA this financial year (my Help2Buy ISA paid interest annually on 1st December, so the interest for the period 1st December 2016 -5th April 2017 looks to have been deducted.)

However, while I understand this year's interest counts towards the £4,000 maximum you can pay in to a Lifetime ISA, I'm surprised they're claiming the £94 interest now counts towards my overall ISA allowance of £20,000.

Where are you guys finding your allowance figures ? I had to call up to determine mine with Skipton - is there another way of finding out I'm blatantly missing...?

Alexland

N1ckS wrote: »

Thanks for the feedback, yes, it is just for a single deposit. I guess that as an existing homeowner with a pension the LISA is not really aimed at/suitable for me?

It may be suitable for you depending on your circumstances.

For example if you are a basic rate taxpayer, already making enough pension contributions to get max employer matching and your employer does not operate salary sacrifice then a LISA would be better for additional contributions towards retirement expenses.

Or if your pension contributions are limited by relevant earnings or you are hitting the £40k annual allowance and unable to use carry forward (or holding back on using carry forward for now).

N1ckS wrote: »

My understanding is that if I wanted to put more money in a LISA with lower fees I could open another account with a different provider in the new tax year?

Yes you can open multiple LISAs but you can only contribute to one per tax year. We already contribute near max into our pensions so are planning to fill our LISAs each tax year to take full advantage of the opportunity.

A big advantage for me is that the LISA does not count towards the pension Lifetime Allowance. I estimate that mine should grow to around £100k and my younger wife's to £150k, in today's money, by that time we are 60. Some of this will help offspring with house deposits and the rest will get recycled into my wife's pension until she is 75.

Alex

epm-84

NevvyC wrote: »

Where are you guys finding your allowance figures ? I had to call up to determine mine with Skipton - is there another way of finding out I'm blatantly missing...?

Click on the link to show recent transactions within your Lifetime ISA and under 'more account details' it shows remaining ISA allowance information for 17/18 tax year.

weller96c

Hi All,

Just a quick question regarding topping up my LISA on the 6th April

Situation:
I have a Skipton LISA, I have recently transferred my H2B ISA into it, and topped up the account to make the £4000 amount for the tax year 17/18
I plan to buy my first home after the account anniversary (6th June)

Question:
After the 6th April I can pay in another £4000 into my LISA for that year. But will there be any penalty if I use the account to buy my house after June 6th?

Thanks to anyone who can help it's really appreciated
Chris