Lifetime ISAs guide
Comments
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You can't do that '... into each every year', because you can't contribute to two different LISAs in the same year (unless after contributing to the first LISA you first transfer all the current-year money from the first one into the second one so that all your current-year LISA money is in the same LISA).Ghostcrawler wrote: »thank you and can I have S&S ISA (say with Fidelity), LISA S&S ISA (say with HL) and LISA Cash ISA (say with Moneybox), paying into each every year?
Putting money into ONE S&S ISA with Fidelity or anyone else, and ONE LISA in the same year as that, is fine. But not multiple LISAs in the same year.
If you like, you could take it in turns from one year to the next, between in the cash LISA and the S&S LISA, until you're 50. But most people putting money away from age below 40 to over 60 would be doing it entirely or at least mostly in S&S, as inflation would reduce the value of cash over time.
The accounts will continue being invested in whatever you've invested them into (and there is no stopping you transferring or changing them, you just can't withdraw without penalty).Also I understand that you can pay only till age 50, so won't be getting bonus either after that, then what happens to all my LISA accounts - they are just invested for another 10 years? do they allow to continue deposit atleast so that it atleast grows further?
There would be no point continuing to contribute after 50 even if you are allowed, as it is a restricted product which doesn't allow penalty-free withdrawals except for specific circumstances. That's not very attractive if there's no bonus to compensate you for the restriction. Once they stop giving you bonuses there's no real point to add more money to the product 'just so it at least grows further' - because you could put your new money somewhere else to grow instead. Would make much more sense in your post-50 years to use the other three types of normal unrestricted ISA products (S&S or Cash or IF ISA), or more likely a pension for the tax relief unless you are up against your annual or lifetime allowance on your pension.
Correct, you can transfer between providers or change investments within an S&S version of the LISA, just as you can today.Lastly, I assume after 50 or 55 of age I can move from LISA S&S ISA to LISA Cash ISA without any penalty?0 -
I'd be really grateful if you could clear up a few points.
1. Is the 25%withdrawal penalty applied to interest earned or just investment plus government bonus? So if you had a balance at the end of the second year of £10200 (i.e. two years of maximum investment and maximum bonus, plus £200 interest), would the penalty be applied to £10000 or £10200?
2. I know you can have a LISA and a H2Bisa at the same time and transfer the latter into the former. Is there a time limit on this or can it be done at any time? I read something about the transfer having to be done within the first year of the LISA, although this might only be the case for during the first year of LISAs i.e. 2017? And can you continue to save into the H2B ISA after you have opened a LISA and then use it at a later stage to fund the LISA within the last few years before the house purchase is going to be made?0 -
The withdrawal penalty is a straight 25% of whatever amount is withdrawn, regardless of the derivation of that figure, so if there was £10,200 in the account and you emptied it (when not buying a first property and before 60) then the penalty would be £2,550 and you'd receive £7,650 net proceeds.1. Is the 25%withdrawal penalty applied to interest earned or just investment plus government bonus? So if you had a balance at the end of the second year of £10200 (i.e. two years of maximum investment and maximum bonus, plus £200 interest), would the penalty be applied to £10000 or £10200?
It's only possible to put up to £4K into a LISA in any given tax year, regardless of whether that's new money or money transferred in from non-Lifetime ISAs such as HTB - there was an exemption during the first year of the LISA scheme that allowed more than £4K to be transferred over from HTBs but since April 2018 that's been the cap on contributions. Transfers from HTB to LISA can be done at any time subject to that annual LISA contribution limit.2. I know you can have a LISA and a H2Bisa at the same time and transfer the latter into the former. Is there a time limit on this or can it be done at any time? I read something about the transfer having to be done within the first year of the LISA, although this might only be the case for during the first year of LISAs i.e. 2017? And can you continue to save into the H2B ISA after you have opened a LISA and then use it at a later stage to fund the LISA within the last few years before the house purchase is going to be made?0 -
Hi,
I am trying to sort out LISAs for me and my partner but she doesn't want to go to one unless there is a branch you can go to. :doh:.
I have done a search and strucggling to see any like Natwest, barclays etc that do them. Any help? we live in North East Wales.0 -
The good news is that LISAs can be opened in branches.Rickmire666 wrote: »I am trying to sort out LISAs for me and my partner but she doesn't want to go to one unless there is a branch you can go to. :doh:.
I have done a search and strucggling to see any like Natwest, barclays etc that do them. Any help? we live in North East Wales.
The bad news is that the list of institutions offering them is so small and localised that I don't believe there are any branches in Wales, although there's a Skipton in Chester....0 -
Hi all!
First post!
Myself and my partner are looking to buy a home in the next 2-3 years, she has a help to buy isa open and I'm looking to open a cash lifetime isa.
With this being a relatively short turnaround of only a matter of maximum 3 years the interest rates offered on the cash lifetime isa [although I know not to be sniffed at] are less appealing than the smoothness of the final transfer, transaction and support offered during.
I know Moneybox currently offer the most attractive interest rate but could anybody detail any comments of their service when it comes to actually withdrawing to complete purchase of a home. I've heard mixed things through online reviews and would rather sacrifice the interest rate safe in the knowledge that I'm with somebody that offers a better service.
Thanks all in advance, any comments are much appreciated.0 -
The Moneybox cash LISA was only launched four months ago, so it seems inevitable to me that there won't have been many people buying with it yet, as they'd have had to open a LISA elsewhere previously and then transferred over to Moneybox for a very short time before redeeming. So, it wouldn't be a surprise to learn of teething troubles, although to be fair their S&S product had been running before that.I know Moneybox currently offer the most attractive interest rate but could anybody detail any comments of their service when it comes to actually withdrawing to complete purchase of a home. I've heard mixed things through online reviews and would rather sacrifice the interest rate safe in the knowledge that I'm with somebody that offers a better service.
I can't speak from direct experience of this (or any other) LISA but there are only three other providers so if you're easily swayed by anecdotal subjective tales of customer service then you might wish to read the equivalent reviews for Skipton, Newcastle and Nottingham....0 -
I know it's an unknown at the moment - but does anyone think that once Saturday passes and the HTB ISAs are no longer available, that banks etc may start to look at offering LISAs?0
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Does the 30th of November deadline apply to the LISA as well as the HTB ISA, or is it just the HTB?0
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Just the HTB ISA; LISAs will continue to be available after that.That_debbie wrote: »Does the 30th of November deadline apply to the LISA as well as the HTB ISA, or is it just the HTB?0
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