LISA bonus, how does it work?

jazzyja

hi wondering if someone could help me. Trying to figure out the earliest I can cash out my isa. So I opened it in May, so May 2021 I can use it for a deposit. Thing is ive read online that it can take up to 8 weeks for the gov bonus. I will hit my 4k limit before April then the new 2021 tax year il be depositing another 4k. Thing is the lisa is with moneybox and they take nearly a week to clear the balance so it would be easy a week after the next tax year plus 8 weeks! Is it correct that if you deposit on the 5th of the month it takes 4 weeks but any date after it takes 8? I want to start house hunting feb/March time. Thanks 

eskbanker

jazzyja said:

Is it correct that if you deposit on the 5th of the month it takes 4 weeks but any date after it takes 8?

Not really but you're heading in the right direction - LISA bonuses work on claim periods that run from the 6th of one month to the 5th of the next month, and they'll be paid up to 4 weeks after the end of each period.  So, yes, contributing on 5th April would result in a bonus payable by early May, and paying in on 6th April would give a bonus by early June, but so would paying in on 5th May, so the delay in having money credited to a Moneybox account doesn't actually lose you any time.

You don't have to wait until the bonus is paid before withdrawing the rest of the money though, and can make multiple withdrawals, so you could access £9K in mid April and the remaining £1K in early June....