You are here: Home - Investing - Experienced Investor - News -

Third Lifetime ISA to launch but no cash version in sight

0
Written by:
14/03/2017
The Share Centre has confirmed it will be one of a limited number of providers offering the Lifetime ISA when it launches next month.  

Hargreaves Lansdown and Nutmeg are the only other platforms so far to confirm they will offer a stocks and shares version of the new savings product on 6 April.

Not a single bank or building society has said it will be ready to launch a cash version of the Lifetime ISA from April.

The new ISA, which was announced by former chancellor George Osborne last year, aims to help young people buy their first home and save for retirement at the same time.

People aged 18-40 will be able to save up to £4,000 each tax year into either a cash or investment version of the product and receive a government bonus of 25%.

The money must go towards a first home worth under £450,000 or be used when the saver reaches 60 or over to go towards retirement.

The government will charge an exit penalty of 25% on the entire amount including investment growth if the money is accessed before the age of 60.

The Lifetime ISA is more generous than the Help to Buy ISA, another product aimed at helping first-time buyers onto the housing ladder.

With the Help to Buy ISA, wannabe buyers can save £2,400 a year (or £3,400 in the first year).

The maximum government bonus with the Lifetime ISA is £32,000, if the account is opened at age 18, but just £3,000 with the Help to Buy ISA.

However, the Lifetime ISA has been criticised for deterring young people from saving into a workplace pension and therefore missing out on employer contributions.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Comments are closed.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
pensioner income, new state pension
Record low savings rates but 40% won’t take any investment risk with their money

UK savers are increasingly cautious about taking investment risk, despite being dissatisfied with returns from savings accounts.

Close