LISA Query

cliodriver2748

Hi, can someone confirm this for me please? I opened a LISA at the start of October, so I will get the 25% bonus in October 26. But is my 4k limit, and the 25% bonus, calculated by the tax year?

So what I’m saying is can I put in the full 4k before April 26, and another 4k before October 26, and when the 12 months comes round will I get “two” bonuses and the LISA will have 10k in it?

Thanks!

se2020

Yes,
You can pay in upto £4k per tax year (april-april)

The interest rate might not be the best available so do the maths as it might make sense to keep the money in an account with a better rate and then pay it into the Lisa at the end of march each year.

Ommbiance

Not an expert but based on arranging my daughter's LISA, the 25% govt bonus on LISA contributions is paid a few weeks after your contribution(s), you don't have to wait a year for it. As it's a type of ISA you can pay the next £4000 in at the start of the tax year. I take se2020's point about interest; however paying in your capital as soon as you can will almost certainly be better because you've immediately gained an additional 25% and then interest on the whole balance.  

clairec666

se2020 said:

The interest rate might not be the best available so do the maths as it might make sense to keep the money in an account with a better rate and then pay it into the Lisa at the end of march each year.

Kind of... but you'll also be getting interest on the 25% bonus too, so it's not just a straight comparison of interest rates.

OP - you don't have to wait a full year for the bonus, it's usually paid within 2 months.

Ch1ll1Phlakes

cliodriver2748 said:

Hi, can someone confirm this for me please? I opened a LISA at the start of October, so I will get the 25% bonus in October 26. But is my 4k limit, and the 25% bonus, calculated by the tax year?

So what I’m saying is can I put in the full 4k before April 26, and another 4k before October 26, and when the 12 months comes round will I get “two” bonuses and the LISA will have 10k in it?

Thanks!

Usually paid around 1-2 months after you pay in. 

I'll assume you went for a LISA with a high interest rate so here's the information about bonuses (with links) from Moneybox (When are LISA bonuses paid out? | Moneybox | Save and Invest)


and Plum (Lifetime ISA - Government Bonus | Plum Help Center)


If it's a different provider the information about this should be given somewhere on their website.

Albermarle

cliodriver2748 said:

Hi, can someone confirm this for me please? I opened a LISA at the start of October, so I will get the 25% bonus in October 26. But is my 4k limit, and the 25% bonus, calculated by the tax year?

So what I’m saying is can I put in the full 4k before April 26, and another 4k before October 26, and when the 12 months comes round will I get “two” bonuses and the LISA will have 10k in it?

Thanks!

There is some misunderstanding here.
The restriction is that you can not use a LISA ( and keep the bonus) until it has been open for at least 12 months.

Ch1ll1Phlakes

Albermarle said:

cliodriver2748 said:

Hi, can someone confirm this for me please? I opened a LISA at the start of October, so I will get the 25% bonus in October 26. But is my 4k limit, and the 25% bonus, calculated by the tax year?

So what I’m saying is can I put in the full 4k before April 26, and another 4k before October 26, and when the 12 months comes round will I get “two” bonuses and the LISA will have 10k in it?

Thanks!

There is some misunderstanding here.
The restriction is that you can not use a LISA ( and keep the bonus) until it has been open for at least 12 months.

Yes exactly. A LISA needs to be opened for 1 year before it can be used with the bonus and the bonus is paid out around 1-2 months after the deposit.

@cliodriver2748 if you paid in £4k by 6 April 2026 (in one go) and then £4k by October 2026 (in one go) you would expect to see a bonus of £1k paid into the account in April-June 2026 and a further £1k paid into the account in October-December 2026.

So when the LISA reaches anniversary at the start of October (i.e. 1 year/12 months after opening) you would expect to see £9k, the first £4k +£1k bonus plus the second £4k. Though you may also see the second £1k bonus dependent on when you paid in the second £4k and how quickly your provider processes this.