Life time ISA question

Rossplymouth

Hi guys I'm thinking of opening a life time ISA and I know it's nearly at the end of the year and the new ones will be out soon is this the same as the normal ISA where the interest rate changes each year? And should I open it now or wait until the new ones come out on the 6th or 7th little bit confused, and if I did open it now and put money in and the new one comes out would I be able to change and transfer it like a normal ISA?

Alistair31

For the maximum gain you should open one now (FY18-19) and fund it with £4K, then in the new financial year (FY19-20) add another £4K.

tibbles209

You have a £4000 LISA deposit allowance this financial year (finishes on 5th April). If you deposited the full £4000 before the end of the financial year, you would get a £1000 government bonus on the money. You would then have a new £4000 allowance for the new financial year, from 6th April onwards, which again could earn you a £1000 bonus; you do not need to open a new LISA for this, you would just contribute more to your already existing LISA. If you don't open a LISA until "the new ones come out" on 6th April you will lose your LISA allowance for the current tax year so will potentially miss out on the £1000 bonus you could get from this.

Interest is a separate thing from the government bonus. It is paid on a monthly or annual basis (depending on the provider) on the money in the account, just the same as any other savings account or ISA.

george4064

I’d suggest you check out the MSE Lifetime ISA Guide here: https://forums.moneysavingexpert.com/discussion/5431681/lifetime-isas-guide