Watching Martin Lewis on ITV I've seen that if put in £4k in an account I get £1k or 25% on my return on £4k
30 January 2023
Question by Chris
Yesterday watching Martin Lewis on ITV channel I've seen that if put in £4k in an account I get £1k or 25% on my return on £4k.
Answered by Chris Broome
I assume you are referring to the Lifetime ISA?
If so, you can use a Lifetime ISA (Individual Savings Account) to buy your first home or save for later life. You must be 18 or over but under 40 to open a Lifetime ISA.
You can put in up to £4,000 each year, until you’re 50. You must make your first payment into your ISA before you’re 40.
The government will add a 25% bonus to your savings, up to a maximum of £1,000 per year.
The Lifetime ISA limit of £4,000 counts towards your annual ISA limit. This is £20,000 for the 2022 to 2023 tax year.
You can hold cash or stocks and shares in your Lifetime ISA, or have a combination of both.
When you turn 50, you will not be able to pay into your Lifetime ISA or earn the 25% bonus. Your account will stay open and your savings will still earn interest or investment returns.
To open and continue to pay into a Lifetime ISA you must be a resident in the UK, unless you’re a crown servant (for example, in the diplomatic service), their spouse or civil partner.
I hope this answer helps. If you have any more questions just let me know.