First cash Lifetime ISA attracts 28,000 new customers
Skipton is the first and only provider to offer a cash version of the Lifetime ISA (LISA) which aims to help people buy their first home and save for retirement at the same time.
The product launched for pre-registered customers on 6 June and officially launched on 8 June. Up until 18 July, Skipton said 28,000 people have rushed to open the product.
Its data shows the product is particularly popular with younger savers as 51% of accounts have been opened by those aged under 30. That said, 6% of those who have opened a LISA are 39-years-old, the cut off point for opening the LISA.
Kris Brewster, head of products at Skipton Building Society, said: “It’s great to see many young people are using our LISA as a step towards helping them own their own home. And we are pleased to offer a product that is helping to encourage future homeowners to save towards this significant milestone.
“Since launching the UK’s first cash Lifetime ISA in June, there continues to be a high level of interest in the product, particularly from those who want to save for their first home. At Skipton, we believe the LISA could make a real difference to a new generation of savers, not only in helping them get a foot on the property ladder, but providing them with another option to help them save for their future too.”
Skipton’s Lifetime ISA offering
Skipton’s cash LISA can be opened online (minimum £1) where it earns an annual interest rate of 0.50%, and savers will receive a 25% government bonus on their deposits too (max. £1,000 per year). See YourMoney.com’s Lifetime ISA guide for full details of the savings scheme.
A 25-year-old maximising the product’s annual allowance (£4,000) for eight years will have an estimated pot of £40,776 by the age of 33, an amount higher than the average first-time buyer deposit, according to Skipton.
First-time buyers who decide to take out a mortgage with Skipton (direct or via intermediaries) will also receive £250 cashback.
Investment Lifetime ISA
There are currently four investment providers offering an investment LISA: AJ Bell, Hargreaves Lansdown, Nutmeg and The Share Centre. See YourMoney.com’s AJ Bell launches Lifetime ISA: how does it compare?
Hargreaves Lansdown today announced that 22,000 LISA accounts have been opened since launch on 6 April this year. The top 10 fund picks (in alphabetical order) are:
CF Lindsell Train UK Equity
CF Woodford Equity Income
CF Woodford Income Focus
Legal & General International Index Trust
Legal & General US Index
Lindsell Train Global Equity
Pyrford Global Total Return
Stewart Investors Asia Pacific Leaders.