Make the most of this tax year’s Lifetime ISA government bonus

The tax year ends on the 5th April, which marks the Lifetime ISA deadline for each year, so there’s limited time to make use of the 25% government bonus

What is a Lifetime ISA?

A Lifetime ISA is a form of Individual Savings Account aimed at those saving for a deposit towards their first home or towards retirement.

What is the yearly limit of a Lifetime ISA?

If you open a Lifetime ISA before the end of the tax year, the maximum you could invest is £4,000, which would earn an extra £1,000 top up from the government – a significant amount.

What types of Lifetime ISA are available?

Depending on your provider, you can have either a cash or a stocks and shares Lifetime ISA.

With the latter, your capital is at risk due to market fluctuations, so its value could go down as well as up. Stocks and shares have been proven to outperform cash over the long term, so cash savers could see less returns on their investment due to the ongoing low interest rates and inflation eroding their savings.

OneFamily only offers a stocks and shares Lifetime ISA.

Things to consider before taking out a Lifetime ISA

As with every financial product, always do your research before purchasing and in this case, before the 5 April.

The Lifetime ISA has some great perks but it won’t be right for everyone. You need to be aged between 18 and 39, and once open, you can pay into your Lifetime ISA until you’re 50.

If you do decide it’s the correct product for your saving goals then it’s well worth making use of the 25% government bonus before this tax year ends.

Interested in finding out more?

Learn more about our stocks and shares Lifetime ISA, or apply for one today...

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