Lifetime ISAs guide

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  • savings_my_hobby
    savings_my_hobby Posts: 363 Forumite
    still no news on interest rates, I remember the HTB ISA was quite generous, I doubt the LISA will be as generous, I assume 2%.
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  • FrustrationFull
    FrustrationFull Posts: 43 Forumite
    The main question i have around this is what happens if it is pulled by future governments? Obviously there is no way to fully predict this but is there any precedent? My main concern is ploughing a lot in for future pension savings (currently 24 so some way off yet) and then the account being pulled and not earning the benefits that i could have done by putting the money into a different account. Does anyone have any idea?
  • greenglide
    greenglide Posts: 3,301 Forumite
    First Anniversary Combo Breaker Hung up my suit!
    Obviously the government can change "anything" during the next 30 years or so!

    At least the LISA does have the good point that from 2018/2019 the "bonus" will be added monthly rather that waiting until you draw the money out. They could just stop the bonus on new money, re-brand it to "Ex LISA" or whatever.

    Presumably the ISA will not survive unchanged as a concept over the next 30 years! Time will tell.
  • maccamarsh
    maccamarsh Posts: 5 Forumite
    I turn forty on 19th April so I need to get a Lifetime ISA opened more or less as they are launched on 6th April. It seems likely that only stocks and shares LISAs will be available on the launch date. I know I can only invest in one per tax year, so my question is if I open a stocks and shares LISA initially, can I transfer that money to a cash LISA from April 2018? Or am I stuck with the stocks and shares version until it pays up when I'm 60?

    Thanks for your thoughts...
  • Ed-1
    Ed-1 Posts: 3,891 Forumite
    First Anniversary Name Dropper First Post
    edited 15 March 2017 at 12:13PM
    maccamarsh wrote: »
    I turn forty on 19th April so I need to get a Lifetime ISA opened more or less as they are launched on 6th April. It seems likely that only stocks and shares LISAs will be available on the launch date. I know I can only invest in one per tax year, so my question is if I open a stocks and shares LISA initially, can I transfer that money to a cash LISA from April 2018? Or am I stuck with the stocks and shares version until it pays up when I'm 60?

    Thanks for your thoughts...

    There's no distinction in law (although the regulations still haven't been made) between a cash and S&S LISA. A LISA is a LISA regardless of what the provider allows you to hold within it and you can transfer a LISA to a LISA.
  • redux
    redux Posts: 22,976 Forumite
    Name Dropper First Anniversary First Post
    edited 15 March 2017 at 12:14PM
    RyanEzio wrote: »
    Judging by the Tory Government's policies. It wouldn't surprise me if they scrap the Lifetime ISA's in a couple of years.

    When George Osborne announced it, it looked a bit like a proxy or prototype for his wish to do something about pension scheme reform.

    The augmentation by bonus is rather akin to tax refund on contributions within a pension scheme ...
  • maccamarsh
    maccamarsh Posts: 5 Forumite
    Ed-1 wrote: »
    There's no distinction in law (although the regulations still haven't been made) between a cash and S&S LISA. A LISA is a LISA regardless of what the provider allows you to hold within it and you can transfer a LISA to a LISA.

    Thank you Ed :)
  • hardleyouth
    hardleyouth Posts: 515 Forumite
    First Post First Anniversary
    Any indication of what kind of platform charge fee the Stocks and Shares LISA providers might charge?


    I hold a S&S ISA (no L) with Hargreaves Lansdown, and have checked out their LISA page but there is no mention of what ongoing charges and fees they will levy for running the account?


    Are they to be fee free? Or is it simply that they haven't announced the fees?


    Ta,
    Chris
  • masonic
    masonic Posts: 23,271 Forumite
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    hardleyouth wrote: »
    Are they to be fee free? Or is it simply that they haven't announced the fees?
    I'd assume they would be the same as the ISA fees unless they announce something different.
  • ISAISAbaby
    ISAISAbaby Posts: 1 Newbie
    If the 2017/18 LISA bonus is paid in a lump sum at the end of the year, is it possible to put the 4k in in the last week of the 17/18 tax year and still earn the whole bonus of 1k? This allows the 4k to earn interest somewhere else for the overwhelming majority of the tax year and not just sit idly for the whole year.
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