LISA: How is the government bonus calculated?

Britnall7700

Hi all,

Further to my posts from last year I opened a LISA with HL earlier this year and put a nominal amount of money in it (£100) as I read that the bonus would be payable based on the balance as of 6th April 2018, so before that date I intend on transferring £3900 in that is currently being built up and gaining interest daily through a high interest bank account.

As the ISA is S&S I invested the £100 in a fund to "dip my toes" in and see how good or bad a relatively small amount of money would do over that time.

The government even says "gives you a government bonus of 25% of the money you put in", but is that based upon the amount i've put in (£4000) or the amount the fund is worth which could be lower than £4000 or higher than £4000 depending on how good or bad the fund did?

Many thanks again for any input.

Ed-1

Britnall7700 wrote: »

Hi all,

Further to my posts from last year I opened a LISA with HL earlier this year and put a nominal amount of money in it (£100) as I read that the bonus would be payable based on the balance as of 6th April 2018, so before that date I intend on transferring £3900 in that is currently being built up and gaining interest daily through a high interest bank account.

As the ISA is S&S I invested the £100 in a fund to "dip my toes" in and see how good or bad a relatively small amount of money would do over that time.

The government even says "gives you a government bonus of 25% of the money you put in", but is that based upon the amount i've put in (£4000) or the amount the fund is worth which could be lower than £4000 or higher than £4000 depending on how good or bad the fund did?

Many thanks again for any input.

I think you answer your own question - it's on the amount you put in. So any interest or growth doesn't attract a bonus.

Britnall7700

Thanks Ed-1 - I guess I knew that, but I think what I really meant was, what happens if the £4000 I put in is "only" worth £3950 because of poor S&S performance at the time?

I will try to get my point across eaiser in future

Ed-1

Britnall7700 wrote: »

Thanks Ed-1 - I guess I knew that, but I think what I really meant was, what happens if the £4000 I put in is "only" worth £3950 because of poor S&S performance at the time?

I will try to get my point across eaiser in future

As I said, growth (or loss) is ignored. Your subscriptions are still £4,000 regardless of what happens after that.

Britnall7700

Thanks again Ed-1!