Stupid LISA question

jonnydeppiwish!

Apologies for the stupid question.

if my daughter opens a LISA today, will she get the bonus before the end of the tax year, or should she just wait?

thanks in advance

eskbanker

For any payment into a LISA between 6 March and 5 April, the bonus would be added to the account in around late April or early May.

Rather than waiting, it'll generally be worth using the 23/24 allowance and leaving open the possibility of another £4K in 24/25....

jonnydeppiwish!

eskbanker said:

For any payment into a LISA between 6 March and 5 April, the bonus would be added to the account in around late April or early May.

Rather than waiting, it'll generally be worth using the 23/24 allowance and leaving open the possibility of another £4K in 24/25....

So if she puts £4k in now, the. £4k in May, would that results in £2k x 2? By ‘she’ I’m mean bank of mum and dad.

thanks!

eskbanker

jonnydeppiwish! said:

eskbanker said:

For any payment into a LISA between 6 March and 5 April, the bonus would be added to the account in around late April or early May.

Rather than waiting, it'll generally be worth using the 23/24 allowance and leaving open the possibility of another £4K in 24/25....

So if she puts £4k in now, the. £4k in May, would that results in £2k x 2? By ‘she’ I’m mean bank of mum and dad.

thanks!

£4K now and another £4K in 24/25 would result in £1K x 2!

badger09

jonnydeppiwish! said:

eskbanker said:

For any payment into a LISA between 6 March and 5 April, the bonus would be added to the account in around late April or early May.

Rather than waiting, it'll generally be worth using the 23/24 allowance and leaving open the possibility of another £4K in 24/25....

So if she puts £4k in now, the. £4k in May, would that results in £2k x 2? By ‘she’ I’m mean bank of mum and dad.

thanks!

Huh? Where does £2k x 2 come from?

If she pays £4k in now, £1k bonus will be added around end of April. 

If she pays in another £4k on or shortly after 6 April, another £1k will get added about 6 weeks later. 

gravel_2

Possibly you are mixing up the bonus with an interest rate, which is separate. The bonus is paid ONCE on the amounts you deposit. There isn't a 25% bonus every year on the total balance.

As above, to get the most you should deposit 4k now and another 4k sometime during 24/25.

jonnydeppiwish!

Sorry, meant £1kx2.  Thanks for your great responses!

kazzyb123

@jonnydeppiwish! did this work out ok? Did you get a 1K bonus for the march LISA and another 1K for the following year? 

My daughter’s birthday is march and she has been given some money. 

How long did it take to set the LISA up?

thanks

Alexland

kazzyb123 said:

@jonnydeppiwish! did this work out ok? Did you get a 1K bonus for the march LISA and another 1K for the following year? 

My daughter’s birthday is march and she has been given some money. 

How long did it take to set the LISA up?

Provided the LISA contribution(s) is/are made before the LISA provider's cut-off dates for the end of the tax year then it doesn't make any difference when the related bonus(es) is/are added but it's usually a month or two after the contribution.

LISA setup times will vary between providers in particular if you have to submit any paper ID in advance as per your other thread. Some providers might accept scanned ID or be able to do computer background checks. With some providers she might be able to open a normal savings account in advance to get all the ID stuff done before opening the LISA. She is likely to be asked her NI number during application which should have been issued around her 16th birthday.

kazzyb123

Alexland said:y

kazzyb123 said:

@jonnydeppiwish! did this work out ok? Did you get a 1K bonus for the march LISA and another 1K for the following year? 

My daughter’s birthday is march and she has been given some money. 

How long did it take to set the LISA up?

Provided the LISA contribution(s) is/are made before the LISA provider's cut-off dates for the end of the tax year then it doesn't make any difference when the related bonus(es) is/are added but it's usually a month or two after the contribution.

LISA setup times will vary between providers in particular if you have to submit any paper ID in advance as per your other thread. Some providers might accept scanned ID or be able to do computer background checks. With some providers she might be able to open a normal savings account in advance to get all the ID stuff done before opening the LISA. She is likely to be asked her NI number during application which should have been issued around her 16th birthday.

Thanks for the reply setting up a savings account first is a really good idea that I wouldn’t have thought of!

Alexland

kazzyb123 said:

Thanks for the reply setting up a savings account first is a really good idea that I wouldn’t have thought of!

I can't claim credit for the idea as I hadn't thought about it either before you asked and my fingers started typing it.