Lifetime ISA insights
Lifetime ISAs can be used to save for your first home or for retirement. You won’t pay tax on any money your lifetime ISA makes and the government will give you 25% on top of everything you pay in, up to £1,000 a year.
Use our lifetime ISA calculator to find out how quickly you could reach your savings goals with a OneFamily Lifetime ISA.
What is a lifetime ISA (LISA)?
A lifetime ISA is a type of individual savings account (ISA) which comes with a government bonus to encourage you to save. They're designed to help you put money away for your first home or for life after 60.
You can pay up to £4,000 into a lifetime ISA each tax year and the government will top up everything you pay in by 25% - meaning there's up to £1,000 of free money up for grabs each year!
Find out more about lifetime ISAs:
What is a Lifetime ISA?
A Lifetime ISA is an ISA with a government bonus that can help you save for your first home or retirement.
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Lifetime ISA: cash vs stocks and shares
If you’re thinking about using a lifetime ISA to save for your first home, have you thought about whether to open one that saves in cash or one that invests in stocks and shares?
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Lifetime ISA FAQs
See below for some common questions about our Lifetime ISA. If you have a question that isn’t answered here, please contact us by secure message from within your online account.
Read articleLifetime ISA rules
- You must be aged between 18 and 39 (inclusive) to open a lifetime ISA and you can keep paying money in until you turn 50
- You can pay up to £4,000 into a lifetime ISA each tax year (tax year runs April to April)
To avoid paying a penalty withdrawal fee:
- You must use the money in your lifetime ISA to buy your first home (unless you're over 60)
- You must have your lifetime ISA open, with money in it, for at least a year before taking money out
- The home you buy must cost no more than £450,000 and be the home that you live in
Find out more about the lifetime ISA rules and allowances:
Lifetime ISA allowance
You can put up to £4,000 into your Lifetime ISA every tax year. The more money you put in, the bigger your government bonus will be.
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Lifetime ISA Charges
There are always some underlying charges when investing in a stocks and shares Lifetime ISA, regardless of your chosen provider.
Read articleCan you use a lifetime ISA to save for your first home?
Yes! Lifetime ISAs replaced help-to-buy ISAs in 2019.
Like help-to-buy ISAs, lifetime ISAs come with a 25% government bonus on everything you save. You can pay in up to £4,000 each tax year, meaning there's up to £1,000 of free money up for grabs every year.
Just be careful to check the rules before you open a lifetime ISA: if you change your mind about buying a home and want to use the money for something else, the government will charge you a withdrawal fee.
Find out more about buying your first home with a lifetime ISA:
How to save on the extra costs of buying a home
When you’re looking to buy your first home, you know you’ll need to save for a mortgage deposit, but there’s a few extra costs that you should be ready to tackle before you start your homebuying journey.
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What is a mortgage?
A mortgage is simply money lent to you by a mortgage lender to buy a property. With most mortgages, you’ll pay this money back over time by paying a set amount each month.
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Buying vs renting: which one is right for you?
Owning your own home is very different to living in rented accommodation and one lifestyle could be more suited to you than the other.
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How to save for your first home faster
Saving for your first home takes time, but there’s a few first-time buyer life hacks that can get your feet on the property ladder much quicker.
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How much deposit do I need to buy a house?
Saving for your first home is easier when you have a target to aim for. But the exact amount you need depends on several factors.
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What is the First Homes scheme?
The First Homes scheme was launched by the UK government with the aim of creating more affordable homes for first-time buyers.
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How to use a lifetime ISA to buy your first home
Lifetime ISAs give you a 25% government bonus on top of your savings to help you buy your first home or save for retirement.
However, buying a house can be a complicated process, so how does your lifetime ISA fit in?
How to get on the property ladder
Your first home may feel like it will take a long time to save for. But there are ways to get there a little bit sooner.
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Help to buy ISA vs lifetime ISA – which is right for you?
First time buyers get a 25% government bonus with help to buy and lifetime ISAs. Find out if transferring to a lifetime ISA is right for you.
Read articleCan you use Lifetime ISA to save for your retirement?
Yes! Once you turn 60, you can access the money in your lifetime ISA for anything you like without paying a withdrawal fee.
The UK government tops up everything you pay into a lifetime ISA by 25% and you can pay in up to £4,000 each tax year, meaning there's up to £1,000 of free money up for grabs every year! You can keep paying money in until you turn 50.
Some people use lifetime ISAs to save for something specific after they turn 60 - such as a big holiday or party - and others use it as an extra savings pot for retirement. Although lifetime ISAs are not an alternative to having a personal pension (they work differently), they can be useful as another pot of money put aside for retirement.
Find out more about saving for retirement with a lifetime ISA:
How to save for retirement when you’re self employed
As a self-employed person you don’t get automatically enrolled in a workplace pension. How can you save for retirement?
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