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

With the tax year end fast approaching – 5 April – there is limited time to make use of the 2017/2018 25% government bonus on the Lifetime ISA (LISA).

That could be up to £1,000 extra in your account.

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What is a Lifetime ISA?

A Lifetime ISA is a new form of Individual Savings Account, primarily aimed at those saving for a deposit towards their first home or towards retirement. If you open a Lifetime ISA before the end of this tax year and invest the maximum of £4,000, you’d earn an extra £1,000 top up from the government – a significant amount. You can then start saving towards your 2018/2019 bonus. But with only three weeks until the end of this tax year, many could risk losing out on this potentially considerable top up to their savings.

What type of Lifetime ISAs 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?

If you're interested in finding out more about Lifetime ISAs or applying for one today,
click on the button below to find out more about our OneFamily stocks and shares Lifetime ISA.

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