Lifetime ISAs guide

edited 14 May 2018 at 1:33PM in ISAs & Tax-free Savings
2.4K replies 377.1K views
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  • AcerBenAcerBen Forumite
    39 Posts
    Fourth Anniversary 10 Posts Name Dropper
    Ed-1 wrote: »
    The payment limit is in line with the tax year so you get a new one on 6th April each year regardless of when you open it, but your first LISA needs to have been open at least 12 months before you can buy a house with it.

    Ed-1 wrote: »
    The only reason you'd open a stocks and shares LISA is if you expect to buy a house in April/May 2018.

    Otherwise wait for cash LISAs.

    Thanks for this.

    Can't help thinking Martin is pushing "open one now to get the clock ticking" too hard then. If you know for sure it's going to be a lot longer than a year before you'll have enough saved, might as well wait for the cash ones.

    I suppose all that matters is that you open and deposit £4k before NEXT April so you don't miss out on this tax year's bonus?
  • nat21luvnat21luv Forumite
    3.4K Posts
    Tenth Anniversary 1,000 Posts Name Dropper Cashback Cashier
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    Kreacher wrote: »
    It says it in the stats box on the LISA guide: http://www.moneysavingexpert.com/savings/lifetime-ISAs

    What can I invest in? Choice of 10 fully-managed portfolios, or five 'fixed-allocation' portfolios
    Min investment: £100 lump sum
    Annual fees: Fully managed portfolio: £0-£100k at 0.75%. Fixed portfolio (for more experienced investors): £0-£100k at 0.45% Fund manager charges (estimated): 0.19%
    Can I transfer my Help to Buy ISA in? No
    Exit fees: None

    I've just read this too. Isnt the whole point to the LISA is that we can transfer H2B in?! I was all set for opening a Nutmeg account tomorrow too.
    £12k in 2020 #=
    1% challenge #61 £142= 81% £10 a day = £460/£500

    **MONEY MAKES ME HAPPY**
  • edited 5 April 2017 at 2:31PM
    adsy_adsy_ Forumite
    4 Posts
    edited 5 April 2017 at 2:31PM
    Hello,


    Would it not be possible to transfer the whole amount of your h2b into your current account, then put it in as a lump sum into the nutmeg account if you cant transfer it from one to another?


    Also, if this isn't an option, could you not run one alongside the other, i.e. continue to pay £200 into your help to buy and put a smallish amount into nutmeg until a cash account opens, at which point transfer both into the cash one?
  • Hi. Yes you could do this, but it's not worth it, You would lose all your bonus from your help to buy isa from 15/16, 16/17 tax year , might be worth reading through martin lewis's article on lisa first
  • adsy_ wrote: »
    Hello,
    Would it not be possible to transfer the whole amount of your h2b into your current account, then put it in as a lump sum into the nutmeg account if you cant transfer it from one to another?

    Yes it's possible, but this would count towards your £4,000 LISA allowance. Transferring an existing HTB ISA into a LISA wouldn't count towards this.
  • Forgive me if this has been answered - but I've not seen it yet.

    If my 18yo opens up a LISA with say 1 grand and he gets 25% interest on the total sum each year - this would be worth about 14k by the time he was 30 and maybe looking to buy for the first time ?

    Have I got this correct ? Seems too good to be true ?
  • WillPSWillPS Forumite
    763 Posts
    Part of the Furniture 500 Posts Name Dropper
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    It's not 25% interest, it's a 25% bonus which is added to deposits.

    Interest will be calculated yearly on the total, but the bonus will only be added to each deposit once (at the end of tax year 2017/18, then at the end of each month thereafter).
  • LISAs launch this Thursday, and by opening one you can get up to £32,000 free...
    Read the full story:
    'Martin's 6 Lifetime ISA must-knows'
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  • adsy_adsy_ Forumite
    4 Posts
    So is the solution to open a nutmeg tomorrow, transfer in money to it (the minimum required) and leave both this and the H2B open. Then when the cash lisa's are available, transfer both accounts into one?
  • BickerBicker Forumite
    11 Posts
    I'm sorry if this has been asked before, but..

    I already have a help to buy ISA which I opened 1 month ago. I am hoping to buy a house in 2-3 years time so i have no need to urgently open the stocks and shares lifetime ISA. I am planning on opening a Lifetime ISA in June and transferring over my current help to buy funds into it.

    I currently have £1600 in my help to buy ISA
    Should I continue to pay £200 into my help to buy ISA until I open the life time ISA?
    If for example I pay in £600 for the months of April, May and June. Can I then open a Lifetime ISA and pay in £4000 from June to April or could I Only pay in £3400.

    Thanks!
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