Turning 40 this week-need LISA info please

Nickjim

Hi all, this is my first post so please bear with me 
I'm turning 40 within a week and have been thinking about setting up a lifetime isa for a while but I have really very limited knowledge with technology and saving info etc. I'm looking at the moneybox app option which I saw on MSE but have some questions.
-I'm self employed and havnt been earning much lately after a contract fell through, is a LISA the best thing for me? 
-I see there is a minimum pay in of £1 but is there a minimum monthly/yearly pay in amount or does it matter if I don't pay much in? 
-as its my 40th in a few days is it a good idea, or bad idea, to set up a LISA anyway even if I end up hardly using it? 
Many thanks in advance 

Alexland

Is this for a first time property purchase (in which case Nottingham pays the same Cash LISA interest rate as Moneybox and are less weird) or for age 60+ (in which case it's a long term S&S relationship so I would go with someone more established such as Hargreaves Lansdown who are better for small accounts or AJ Bell YouInvest who are better on big accounts)? Either way I agree open the account up with a small deposit to keep your options open. Once open with an initial deposit there is no obligation to keep contributing.

Alex

margaretx9

Just open one - and worry about the detail later. Once you hit 40 its too late. If you already own a house you still get the annual 25% top up - and you can draw it down from 60. 
The Skipton lifetime isa can be opened online for just £1
https://www.skipton.co.uk/savings

eskbanker

margaretx9 said:

If you already own a house you still get the annual 25% top up 

Just to be clear, there is of course no annual 25% top up, but there is a 25% bonus added (once only) to each contribution.

Alexland

margaretx9 said:

Just open one - and worry about the detail later. Once you hit 40 its too late. 

With LISAs it's better the OP getting the provider right first time as some provider(s) don't accept inbound transfers and other(s) don't allow you to open an an account to facilitate a transfer after 40. A little bit of research shouldn't cause them to miss the deadline.

margaretx9

eskbanker said:

margaretx9 said:

If you already own a house you still get the annual 25% top up 

Just to be clear, there is of course no annual 25% top up, but there is a 25% bonus added (once only) to each contribution.

Yes sorry - if you invest £1 a year you get a 25p bonus but only once on that £1. A bit like pensions tax relief in a way.

Nickjim

Thank you all for your replies.
To be honest I'm absolutely clueless about these sort of things and although I do like to learn about things first before jumping in I wouldn't know where to start with all this. It's embarrassing to say but this is to be my first real saving or investment for my retirement/later life, I have another cash isa and a couple of bank accounts and although I've wanted to start saving more long term my lack of knowledge has held me back. My life and work has never required me to get tangled up with most modern things, I don't have Facebook and I send less than 10 emails a year which il be honest suits me. I just didn't want to make the mistake of opening a LISA but then have it hinder me in some way later on because of me not knowing something about them. Thanks again 

margaretx9

Nickjim said:

Thank you all for your replies.
To be honest I'm absolutely clueless about these sort of things and although I do like to learn about things first before jumping in I wouldn't know where to start with all this. It's embarrassing to say but this is to be my first real saving or investment for my retirement/later life, I have another cash isa and a couple of bank accounts and although I've wanted to start saving more long term my lack of knowledge has held me back. My life and work has never required me to get tangled up with most modern things, I don't have Facebook and I send less than 10 emails a year which il be honest suits me. I just didn't want to make the mistake of opening a LISA but then have it hinder me in some way later on because of me not knowing something about them. Thanks again 

Hope the advice has been of help.
Just open a lifetime isa anyway - it only takes £1 and you can get the benefit of it for years to come. There is no downside - beyond waiting until you are 60 to get £1.25 back and if you save more you get a bigger government bonus.

Nickjim

Yes brilliant thank you all very much. So could I open a money box savings account where a bit goes in every time I use my card at 1.45% or wotever it is  and then transfer that over to my LISA once a year and get the 25% government bonus on it? 

afis1904

LISAs pay the bonus monthly based on your contributions that month.

margaretx9

Agreed - but the priority is to open a cash or stocks and shares lifetime isa before your 40th birthday. 
The moneybox lifetime isa is good - similarly the Nottingham and Skipton BS ones can also be opened on line.
https://www.moneyboxapp.com/cash-lifetime-isa/
https://www.thenottingham.com/savings/products/lifetime-isa/
You have to use the app for the moneybox one to manage it - if that's fine for you go ahead. Just don't wait - or you will be too late at midnight on your birthday!
Happy 40th by the way in advance!