LISA/ISA General Qs

interestratesneedtorise

Hey was wondering if anyone could help me, I know these are relatively simple questions but I can't find a straight answer;

1. If I open a LISA today then put the £4k in it, would I get the bonus of £1k in April or does the money need to be in there the whole year?
2. I've never opened an ISA before, do you need to open it at the start of the new tax year (April) or does it not matter?
3. What's your opinion on the LISA being is a safe product for investing money (not buying a house) in terms of the government changing the terms and conditions later on or something to that effect? Is that probable?

Thanks

cloud_dog

interestratesneedtorise wrote: »

Hey was wondering if anyone could help me, I know these are relatively simple questions but I can't find a straight answer;

1. If I open a LISA today then put the £4k in it, would I get the bonus of £1k in April or does the money need to be in there the whole year?
2. I've never opened an ISA before, do you need to open it at the start of the new tax year (April) or does it not matter?
3. What's your opinion on the LISA being is a safe product for investing money (not buying a house) in terms of the government changing the terms and conditions later on or something to that effect? Is that probable?

Thanks

1. Depending on the date deposited, you should receive the bonus in the following month.

2. Doesn't matter.

3. It is as safe as any other government sponsored product. It may well be revised/reduced/removed by future governments but history has shown that pre-existing commitments have been honoured.

If you are a basic rate tax payer not paid by Salary Sacrifice then a S&S LISA for retirement is a good option to consider.

cfw1994

1. Straight away, I am pretty certain. https://www.youinvest.co.uk/faq/when-government-bonus-paid seems to confirms it, and I believe that’s what happened when our ‘kids’ opened them last autumn.
2. Whenever you like
3. I doubt any significant changes to access time would happen - I.e., from age 60. We had PEPs turn into ISAs. A government would be more likely to start a new scheme than desperately mess with an existing one, IMHO.

If it is long term investing, a pension (if you work, or even up to £2,880 pa if you don’t) would still make better sense, I feel.....and for long term, I would chose S&S rather than a cash LISA.