Lifetime ISAs guide
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Heya guys, I've signed up to the Skipton lifetime ISA and hope to add in 4K by April. I've noticed it says 'From 2018/19 tax year the government will pay the bonus based on the contributions you have made each month.' Does that mean in order to get the full 1k next tax year you'd have to put in 4k as soon as the 2018/19 tax year starts? I had hoped to put the 4k in around March 2019.0
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Presumably you are saving for retirement? Generally use lump sums for fixed term saving, and regular drip feed in for investments unless you have a cash pile. The gov bonus is paid on contributions so as long as you put in 4000 each tax year you get a guaranteed 1000. The fees for buying funds are very small, platform fee is more important, AJBell certainly looks the best at the moment
Thank you. So paying in around £333 a month after this tax year will work just as well as putting the £4000 in at the end of each tax year. I was a bit worried it would cost me lots more to do.
And yes, it's for retirement.
Thank you! X0 -
Hi all. I have a question about using Lifetime ISAs to buy a home. If I and my wife both use Lifetime ISAs for the purchase, would we both have to be on the mortgage application? I'm concerned that my wife's poor credit rating could negate the benefits of the Lifetime ISA. Many thanks for any information anyone might have on this.0
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Hello all,
I put a v small deposit into a Nutmeg Stocks & Shares LISA earlier in the year (when there was no cash option), with the intention of transferring in my Help to Buy ISA in March 2018. Now I've noticed (in the main LISA guide) that Nutmeg doesn't accept transfers (yet). Given that there also seems to be a risk with transferring into the Skipton Cash LISA, what do you think is the best thing for me to do now? Transfer my small deposit into a Skipton LISA? Or wait and see if Nutmeg starts allowing transfers?
Hope that makes sense!
Thanks0 -
Hello all,
I put a v small deposit into a Nutmeg Stocks & Shares LISA earlier in the year (when there was no cash option), with the intention of transferring in my Help to Buy ISA in March 2018. Now I've noticed (in the main LISA guide) that Nutmeg doesn't accept transfers (yet). Given that there also seems to be a risk with transferring into the Skipton Cash LISA, what do you think is the best thing for me to do now? Transfer my small deposit into a Skipton LISA? Or wait and see if Nutmeg starts allowing transfers?
Hope that makes sense!
Thanks
Personally I've got a Skipton LISA and am planning to transfer in during March 2018. I can't see them stopping accepting H2B ISA transfers but can always open another that does allow transfers if it comes to it at the time and close the Skipton one (opening a new Skipton one next tax year if need be).
Bear in mind that whichever you choose, you can't pay/transfer into 2 LISAs in the same tax year, so if you open a Skipton one you'll need to transfer in or close the Nutmeg LISA to the Skipton LISA.0 -
Hi Everyone
Can someone explain to me the max bonus you can earn when you factor in transfering a HTB into your LISA?
I read the max bonus one can earn is 32k from 18-50yrs old when u put in 4k each year. But sure that doesnt include the bonus if u transfer in a HTB.
Is £1200 + 16x £200 = £4200 Dec15 to April 17 the max u can transfer in which will earn a bonus outside of you annual 4k LISA allowance?
Would the bonus on this HTB amount at 25% be £1050 on top of the possible max 32K if u hold the LISA from 18 -50 yr olds so the very max u can get is £33050??
Any help is welcomedSwagbucks - Apr 14 - Nov 19PayPal £1745 Amazon £2285 John Lewis £170 Mastercard £3800 -
Would the bonus on this HTB amount at 25% be £1050 on top of the possible max 32K if u hold the LISA from 18 -50 yr olds so the very max u can get is £33050??
It's still not the absolute maximum though, because the interest earned on the HTB between December 2015 and April 2017 also qualifies for the LISA bonus once transferred, so if you're really determined to calculate the theoretical maximum for some reason then you'd need to factor that in too!0 -
Yes, the bonus would apply to transferred pre-17/18 HTB funds so you could indeed get £33,050 if you happened to be born between 7 April 1998 and 1 December 1999 (to be old enough to have opened a HTB in December 2015 but young enough to make 32 years of contributions to a LISA between 6 April 2017 and 50th birthday), and made all the necessary payments on optimal dates....
It's still not the absolute maximum though, because the interest earned on the HTB between December 2015 and April 2017 also qualifies for the LISA bonus once transferred, so if you're really determined to calculate the theoretical maximum for some reason then you'd need to factor that in too!
Thanks another question relating to LISAs
Regarding the next tax yr in April 18, ive read ppl will pay in April 18 another 4k to recieve the 25% 1k bonus the following month. Why not wait until the end of that tax yr say mar 19 to deposit the other 4k, cant see the rate increasing from 0.5% compared to saving the 4k elsewhere during that tax yr.Swagbucks - Apr 14 - Nov 19PayPal £1745 Amazon £2285 John Lewis £170 Mastercard £3800 -
Regarding the next tax yr in April 18, ive read ppl will pay in April 18 another 4k to recieve the 25% 1k bonus the following month. Why not wait until the end of that tax yr say mar 19 to deposit the other 4k, cant see the rate increasing from 0.5% compared to saving the 4k elsewhere during that tax yr.0
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Thanks another question relating to LISAs
Regarding the next tax yr in April 18, ive read ppl will pay in April 18 another 4k to recieve the 25% 1k bonus the following month. Why not wait until the end of that tax yr say mar 19 to deposit the other 4k, cant see the rate increasing from 0.5% compared to saving the 4k elsewhere during that tax yr.
You also need to bear in mind that you'll get the bonus quicker from next tax year as it's paid on a rolling monthly basis rather than at the end of the tax year. So you'll get growth on the bonus too.0
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