Lifetime ISA

But with the LISA you get the 25% bonus on top of the "usual" interest rate. So you could get 1% interest like any other ISA (woohoo :rolleyes: ), plus your 25% bonus if you're saving for a house. But yes I agree that if you're not saving for a house you may as well pay into a pension properly. Nothing stopping someone using a LISA like a normal ISA though, which I guess is the intention.
 
When we opened our h2b isa's we were surprised that every bank we spoke to knew nothing about the liftetime isa. Our intention was to transfer our h2b's into lifetimes and use it to purchase a property.
 
Aye if you have extra money, then if you pay at 40% dump it into your pension.
If you have existing ISA money and want to keep it ISA, and know you won't need it before 60, then a cash LISA would be the way to move it 4K a year until you are 50, then let it cook for 10 years - unfortunately with no products currently available a big dirty flop looks very possible.

The problem with the stocks and shares version is they are worse than normal ISAs, as you can't pull the plug when you want, you have to leave it until 60 or first time buy, else you get nailed with a v harsh penalty, so if the markets do a 2008 close to your 60th birthday, you're in bother that you can't escape.
 
This is such a terrible initiative. Products and services are priced at the level the market will bear, if you add 25% to a house deposit you will just push house prices 25% up and people will be worse off. Lovely that poor people are paying income tax to subsidise home buyers. :rolleyes:
 
The restrictions around using it to fund a buy to let are also pretty wooly and loose. That'll anger a lot of people on here.

Expect it to also be popular for grand parents to shovel money in to for grand children to buy their first house.

Both measures that'll keep stoking the property price fire.
 
Hargreaves Lansdown are going to be offering them, so as far as I'm aware you'll be able to put any of their conventional ISA products into it.
 
Energize said:
This is such a terrible initiative. Products and services are priced at the level the market will bear, if you add 25% to a house deposit you will just push house prices 25% up and people will be worse off. Lovely that poor people are paying income tax to subsidise home buyers. :rolleyes:
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Yup. But don't forget that the United Kingdom Ltd. runs off of house-price inflation. We have nothing else to offer! Keep the plebs happy by making their house earn more than them :rolleyes:

The_Abyss said:
The restrictions around using it to fund a buy to let are also pretty wooly and loose. That'll anger a lot of people on here.

Expect it to also be popular for grand parents to shovel money in to for grand children to buy their first house.

Both measures that'll keep stoking the property price fire.
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Yep. But the max you can put in is £4k/year so actually it's not a huge amount. If you could dump in £30k from the get-go then yes that would be a big problem.
Jokester said:
Hargreaves Lansdown are going to be offering them, so as far as I'm aware you'll be able to put any of their conventional ISA products into it.
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According to their site it's Stock and Shares. I've never dabbled in a S+S ISA, perhaps now is the time to have a look :o
 
I should update my own thread.
The first cash style Lifetime ISA has been announced by Skipton.
This is what MSE has to say currently.

Not available until June 2017. The first cash LISA we know about
Skipton Building Society
The Skipton Lifetime ISA is the first cash LISA that we know will be available - launching sometime in June 2017. We have few details, but will add more here as we find it out - including the all important details of rates and whether it'll accept transfers in.

Need-to-knows
  • Interest rate: TBC
  • Opening restrictions: Must be aged 18-39 to open it.
  • Min pay-in: TBC | Max pay-in: £4,000/yr
  • Accepts transfers: TBC
  • FSCS protection: Full £85,000 UK saving safety guarantee
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I came in to post the same thing. What a shame. Who thought giving FTBs £1k/yr to prop up the housing market would be so difficult :p

So, is it worth opening a Stocks and Shares LISA then transferring to a cash ISA? Although Skipton says TBC on accepting transfers..
 
The Skipton LISA launched today with a measly rate of 0.5%. Not surprising. I have to say I really don't know whether to bother or not. I can take £4k every year from my main ISA and chuck it in the LISA to get my "free" £1k bonus but considering I live in London (or even if I move out to elsewhere in the SE), by the time I come to buying a home it's almost surely going to cost over £450k, rendering the whole thing absolutely pointless :confused:

Anyone else in this quandry?
 
Yeah.

I get 3.5% on my Help to Buy ISA and 1.5% in Santander

Also once it's in the LISA you can't touch it or withdraw it if anything bad happens (without penalties). What seemed good at the time, seems a bit pants without a decent interest rate.

I know I can put £1 in just to open one now, but hopefully more will launch soon.
 
For me I reckon it'll be worth it,
I can only afford 3-400 a month to save, so being able to put that in LISA instead of 200 in Help to Buy and the rest elsewhere would be good
 
There's absolutely no incentive for a cash LISA provider to offer a competitive rate. Firstly, there's no competition and second, they do not need to attract in new funds - far from it. The 'gain' to the customer comes not from the rate but from the 'bonus'.
 
GiraffePencils said:
For me I reckon it'll be worth it,
I can only afford 3-400 a month to save, so being able to put that in LISA instead of 200 in Help to Buy and the rest elsewhere would be good
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At the 0.5% interest rate you are better off saving it in an ISA account and putting anything you've saved in the LISA at the last possible moment before the next tax year.
 
VincentHanna said:
At the 0.5% interest rate you are better off saving it in an ISA account and putting anything you've saved in the LISA at the last possible moment before the next tax year.
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Unfortunately I only have a current account and a Help to Buy ISA right now.
So if I open the LISA I wouldn't be able to open another Cash ISA.
(Or so I believe)
 
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