Lifetime ISAs guide

pink_pirlie

00lakes wrote: »

I personally am still unsure if I need to begin paying money in each month - or can simply pay a lump of £4000 at the end of the year (now that I!!!8217;m in the second year of my LISA).


Can I do the same this year? Or does it need to be a regular monthly payment to receive the 25% government bonus? (Now that they!!!8217;re applying it monthly)?


Could someone shed light on this please? Thank you,

You can deposit the money any time during the year.
Bonus is paid monthly after you deposit.
Better interest rates available than the LISA one so you are better saving elsewhere and moving it at the end of the year. Remember to ensure your final deposit is maybe 3 months Before you expect to complete when buying a house to ensure the bonus is paid before completion and you have time to arrange to withdraw it. This may speed up but best to be sure.

Zorillo

Yes, you can do the same this year.

Alexland

pink_pirlie wrote: »

Better interest rates available than the LISA one so you are better saving elsewhere and moving it at the end of the year. Remember to ensure your final deposit is maybe 3 months Before you expect to complete when buying a house to ensure the bonus is paid before completion and you have time to arrange to withdraw it. This may speed up but best to be sure.

Looks like 00lakes is investing in S&S with Nutmeg presumably for the medium to long term (as we are) in which case so given the average direction of the stock market is upwards (with dividends reinvested, etc) it makes sense to get the contributions in early to get the bonus working hard.

Alex.

Hlynur

Received my bonus today into my AJ Bell/YouInvest account :T

il638

received my bonus on skipton lifetime isa on 28th april guys

Zorillo

Yes I've just noticed that the bonus has been paid into my AJ Bell account. It wasn't there this morning.

00lakes

Thanks that’s really helpful, and appreciated.
I like to keep options open generally, although as Alex has pointed out - looking more long term with S&S could prove beneficial.
However it’s likely we’ll be purchasing around this time next year, so with risk set to low with Nutmeg, it’s really the governments extra £2k that’s important at this point. Cha-ching!

Zorillo

Then you may be better off with Skipton, who will actually hold your money, rather than Nutmeg who will try not to lose it (in the sense that even a low risk investment may fall in the event of a crash).

Alexland

Yup if you will need to withdraw the money next year then it's far too short for a S&S investment.

Even if markets hold up the growth on your low risk portfolio is unlikely to exceed the Nutmeg fees and interest that could have been earned with Skipton. In your position I would definitely consider switching to Skipton.

Sussex_Dave

Skipton have already transferred funds to my conveyancer after my conveyancer sent the declaration but I now require the £1000 18/19 bonus to be transferred once paid. I hadn't initially envisaged transferring this but a delay has meant I can use this. Skipton advised I can send a 2nd declaration to them without having to go through my solicitor but I'm unsure if this is correct?

Any views?

Cheers
Dave