LISA Bonus

Kazza1002

Hi, hopefully not a silly question. My daughter opened a Nottingham LISA account a week ago & today transferred £4000 into it. She plans to pay another £4000 in at the start of the new tax year.  Will she recieve the full 25% bonus i.e. £1000 for this 19/20 tax year (even though the £4000 was paid in just today) if so will it be added on or before the 5th April 2020? 
Many thanks for your help.

masonic

If she has paid £4k in today, then she can expect to receive the £1k bonus by the end of April. If she pays in a further £4k in at the start of the next tax year, she can expect to receive a further £1k bonus by the end of May.

Alexland

Given the Nottingham LISA requires an opening deposit of at least £10 then a subsequent £4,000 contribution today is likely to be rejected as over the annual limit. We have seem providers reject such contributions in full rather than just the amount over the limit.

Kazza1002

Luckily enough she did put in a total of £4000 as you say the £10 was initially paid then the further £3990. Thank you very much Masonic & Alexland for your help. 

Curls2208

masonic said:

If she has paid £4k in today, then she can expect to receive the £1k bonus by the end of April. If she pays in a further £4k in at the start of the next tax year, she can expect to receive a further £1k bonus by the end of May.

Hi.

You seem to know your stuff. Is it the same for ALL LISA's? 
I'm looking to buy very soon. I am going to put in a further 4K the second I can in April. Will I have to wait until the end of May to get my bonus? I need it as soon as possible as I'm going through all the house buying processes now. It's no chain and the seller expects to be complete by 1st May....Hmmm looks like I may have to disappoint them!

eskbanker

masonic said:

If she has paid £4k in today, then she can expect to receive the £1k bonus by the end of April.

A deposit today should result in a bonus being paid by the beginning of April or maybe even late March, but anything after Thursday would slip into the next bonus period and be paid later April or early May....

eskbanker

Curls2208 said:

masonic said:

If she has paid £4k in today, then she can expect to receive the £1k bonus by the end of April. If she pays in a further £4k in at the start of the next tax year, she can expect to receive a further £1k bonus by the end of May.

Hi.

You seem to know your stuff. Is it the same for ALL LISA's? 
I'm looking to buy very soon. I am going to put in a further 4K the second I can in April. Will I have to wait until the end of May to get my bonus? I need it as soon as possible as I'm going through all the house buying processes now. It's no chain and the seller expects to be complete by 1st May....Hmmm looks like I may have to disappoint them!

Yes, the bonus periods run from the 6th of one month to the 5th of the next, and should be paid within 28 days after that, so anything paid in at the start of the tax year will result in a bonus being paid no earlier than late May. How critical is that extra £1,000 to your plans? You can make multiple withdrawals for the same purchase, so could withdraw it all during April and then access the bonus once paid, if you can find a way of making that work....

masonic

eskbanker said:

masonic said:

If she has paid £4k in today, then she can expect to receive the £1k bonus by the end of April.

A deposit today should result in a bonus being paid by the beginning of April or maybe even late March, but anything after Thursday would slip into the next bonus period and be paid later April or early May....

Oops, yes with the deposit being on the 3rd of March puts it in the Feb/Mar claim period. I should have checked the date more carefully!

masonic

Curls2208 said:

masonic said:

If she has paid £4k in today, then she can expect to receive the £1k bonus by the end of April. If she pays in a further £4k in at the start of the next tax year, she can expect to receive a further £1k bonus by the end of May.

Hi.

You seem to know your stuff. Is it the same for ALL LISA's? 
I'm looking to buy very soon. I am going to put in a further 4K the second I can in April. Will I have to wait until the end of May to get my bonus? I need it as soon as possible as I'm going through all the house buying processes now. It's no chain and the seller expects to be complete by 1st May....Hmmm looks like I may have to disappoint them!

If you were considering using a LISA for retirement after your purchase then the most practical solution would be to find the extra £1000 from elsewhere and let the bonus get paid into the LISA after completion.