Lisa question

Johnnyjam23

Hello,

A question for somebody that knows the answer..

With a Lifetime isa you can deposit £4000 annually, if I were to get the 12-month minimum term ball rolling with just £1 deposit, could I then blast the extra £3999 into the savings account at the last minute (i.e. 11 months into opening the account) and still get the 25% state bonus on the full £4000?

Or is the state bonus calculated monthly and then paid into the account annually?

Hope this makes sense and any help is appreciated! :money:

John

Zorillo

Yes. You can put all £4000 in on day 365 of the tax year if you want. Although it'd be a bit daft to leave it that late.

trevman

I believe the bonus for any deposit is paid at the end of the month. So in month 1 you would get 25p from your £1 and then in month 11 you would get £999.75 bonus

When is the Lifetime ISA government bonus paid?
The Lifetime ISA bonus is paid monthly, directly into your Lifetime ISA account. The bonus will be 25% of the amount you've paid into your Lifetime ISA that month. If you opened and paid money into your Lifetime ISA before April 6 2018, we expect the bonus for these payments to be available in your Lifetime ISA at the start of May 2019

https://www.youinvest.co.uk/lifetime-isa

Johnnyjam23

Perfect just what I needed to know, didn't want to leave money in the LISA with the low interest, thanks for the replies much appreciated!