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  • FIRST POST
    • savings my hobby
    • By savings my hobby 10th Apr 18, 5:41 PM
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    savings my hobby
    Clarify Lisa/ Isa please
    • #1
    • 10th Apr 18, 5:41 PM
    Clarify Lisa/ Isa please 10th Apr 18 at 5:41 PM
    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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Page 1
    • Zorillo
    • By Zorillo 10th Apr 18, 5:53 PM
    • 357 Posts
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    Zorillo
    • #2
    • 10th Apr 18, 5:53 PM
    • #2
    • 10th Apr 18, 5:53 PM
    The LISA provider is correct.
    • sully1311
    • By sully1311 10th Apr 18, 5:53 PM
    • 71 Posts
    • 22 Thanks
    sully1311
    • #3
    • 10th Apr 18, 5:53 PM
    • #3
    • 10th Apr 18, 5:53 PM
    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
    • By Alexland 10th Apr 18, 6:01 PM
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    Alexland
    • #4
    • 10th Apr 18, 6:01 PM
    • #4
    • 10th Apr 18, 6:01 PM
    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
    • By ColdIron 10th Apr 18, 6:08 PM
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    ColdIron
    • #5
    • 10th Apr 18, 6:08 PM
    • #5
    • 10th Apr 18, 6:08 PM
    Nationwide are wrong. See section 6 of the MSE guide to LISAs

    https://www.moneysavingexpert.com/savings/lifetime-ISAs
    • ValiantSon
    • By ValiantSon 10th Apr 18, 7:21 PM
    • 2,537 Posts
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    ValiantSon
    • #6
    • 10th Apr 18, 7:21 PM
    • #6
    • 10th Apr 18, 7:21 PM
    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.
    • savings my hobby
    • By savings my hobby 13th Apr 18, 11:50 AM
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    savings my hobby
    • #7
    • 13th Apr 18, 11:50 AM
    • #7
    • 13th Apr 18, 11:50 AM
    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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    • savings my hobby
    • By savings my hobby 13th Apr 18, 11:52 AM
    • 357 Posts
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    savings my hobby
    • #8
    • 13th Apr 18, 11:52 AM
    • #8
    • 13th Apr 18, 11:52 AM
    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?
    Originally posted by sully1311
    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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    • paulharding150
    • By paulharding150 13th Apr 18, 12:18 PM
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    paulharding150
    • #9
    • 13th Apr 18, 12:18 PM
    • #9
    • 13th Apr 18, 12:18 PM
    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
    • By eskbanker 13th Apr 18, 12:20 PM
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    eskbanker
    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?
    Originally posted by savings my hobby
    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
    • By Alexland 13th Apr 18, 12:33 PM
    • 3,106 Posts
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    Alexland
    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.
    Last edited by Alexland; 13-04-2018 at 12:36 PM.
    • savings my hobby
    • By savings my hobby 13th Apr 18, 4:21 PM
    • 357 Posts
    • 445 Thanks
    savings my hobby
    Oh thanks for the clarification.

    UPDATE-------------------------------------------------------------------

    I went back to Nationwide and spoke to the branch manager, She insisted I could not open a cash ISA, I told her my LISA provider would allow it and to refer to MSE, she duly did and after a short wait allowed me to open a cash ISA.

    Thanks everybody and thank you MSE.
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