Third cash Lifetime ISA product to launch
The mutual becomes just the third provider to offer a cash version of the popular home and pension saving scheme backed by the government.
Newcastle said the product will be launched in late October/early November and the interest rate offered will be announced at launch.
Customers will be able to open the cash Lifetime ISA (LISA) online only and the minimum amount needed to open the account will be £1.
More on the Lifetime ISA
The Lifetime ISA launched in April 2017, offering people aged 18-39 the chance to save up to £4,000 each tax year towards a property or pension and receive a government bonus of 25%.
It was a highly anticipated scheme but at launch just a handful of providers offered the product, and all were investment based. In June 2017, Skipton Building Society became the first provider to launch a cash version of the LISA and it was followed by the Nottingham Building Society this summer.
YourMoney.com is aware of 10 other providers now offering the LISA:
- AJ Bell (investment)
- Foresters Friendly Society (With Profits)
- Hargreaves Lansdown (investment)
- MetFriendly (for police officers, contractors, volunteers & their immediate family)
- Moneybox (app-based)
- Nottingham Building Society (cash)
- Nutmeg (investment)
- OneFamily (investment)
- Skipton Building Society (cash)
- The Share Centre (investment).
Customer director at Newcastle Building Society, Stuart Miller, said: “We know how difficult it is for many people to save up enough of a deposit to allow them to own their own home. Similarly, the importance of planning your finances ahead of retirement has never been more important. That is why Newcastle Building Society wants to be able to offer a Lifetime ISA.”
In July this year, the influential Treasury Committee called for the LISA to be scrapped, stating that it was a confusing and strange hybrid between pension saving and saving for a home. However, the Newcastle BS said helping people own their own home and save for their future is “core to our purpose” and currently, there’s no confirmation the scheme will end.