Clarify Lisa/ Isa please

Hi all, I have a LISA which I have paid the full 4k allowance into for this tax year.
The Lisa provider has told me I can use my remaining ISA allowance with any organisation I choose except when I went into nationwide yesterday the lady informed me that I can only open a cash ISA with my LISA provider.

Who is correct?

apologies if this question has been asked before and if it has please direct me to the correct thread, Thanks.
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  • Zorillo
    Zorillo Posts: 774
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    The LISA provider is correct.
  • sully1311
    sully1311 Posts: 375
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    I'm pretty sure you can use any Cash ISA.

    Can I ask why you've used deposited the full 4k already this tax year and not put the money in a better interest paying savings account? Are you planning on buying soon?
  • Alexland
    Alexland Posts: 9,653
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    Nationwide staff have not been trained on LISAs as they do not offer the product and its probably beyond the capabilities of some of their staff to understand the full ISA landscape. You can have your Cash ISA with anyone.
  • ColdIron
    ColdIron Posts: 8,903
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    Nationwide are wrong. See section 6 of the MSE guide to LISAs

    https://www.moneysavingexpert.com/savings/lifetime-ISAs
  • ValiantSon
    ValiantSon Posts: 2,586 Forumite
    Yes, as the others have said, the lady in Nationwide is wrong. You can open a cash LISA with a different provider. Branch staff seem to be generally quite poorly trained on product regulations and T&Cs; this is an issue which seems to affect many banks and building societies.
  • Thanks to everyone who replied.
    The lady at nationwide did admit (as we all know) that Nationwide does not offer a LISA. I was convinced I was allowed to open a Cash ISA there despite having a LISA until she cast doubt.
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  • sully1311 wrote: »
    I'm pretty sure you can use any Cash ISA.

    Can I ask why you've used deposited the full 4k already this tax year and not put the money in a better interest paying savings account? Are you planning on buying soon?

    Because I have filled most of the better paying accounts.
    Besides, and correct me if i'm wrong but in order to reap the full benefits of the LISA (£1000 on £4000) don't you have to have the £4000 in the LISA for the whole year?
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  • No you don't.

    In order to qualify for the max £1,000 govt bonus, you could (if you wanted) simply deposit £4,000 on the last day of the financial year.

    You sound like you've got your head screwed on though, so don't worry about people saying you could have done this, or you should have done that simply to get a few extra quid in interest.
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  • eskbanker
    eskbanker Posts: 30,411
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    Because I have filled most of the better paying accounts.
    Besides, and correct me if i'm wrong but in order to reap the full benefits of the LISA (£1000 on £4000) don't you have to have the £4000 in the LISA for the whole year?
    You're wrong! :)

    Unlike interest, LISA bonuses aren't dependent on time that funds are in the account, so if you pay in £4K then you'll get the £1K bonus within 4-8 weeks thereafter, regardless of whether you do this at the beginning or end of the tax year....

    Hence many on here choosing to optimise their return by keeping £4K in accounts paying relatively decent interest (better than Skipton's 0.75% anyway) and then transferring over to LISA next March.
  • Alexland
    Alexland Posts: 9,653
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    edited 13 April 2018 at 11:36AM
    Unless you are saving for retirement in a S&S LISA in which case as the average market direction is upwards you are better investing early to get the bonus invested earlier. But then a crash could happen at any time.
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