As of 28 August, Nottingham Building Society has a cash Lifetime ISA (LISA) available. They are one of only two providers offering a cash version.
This account can be opened with just £10 but you must go into a branch to actually open the account; however, an online version should be available by the end of this year.
To recap, a LISA allows those aged between 18 and 50 to save up to £4,000 a year towards a pension or a first home tax-free, with the promise of a 25% government bonus capped at £1,000 a year. However, withdrawal for any other purpose will trigger a 25% exit penalty levied by the government.
Whilst LISAs have received some negative press they do have their benefits and a cash version would be suitable for someone with a very cautious attitude to risk or who needed to utilise the funds in a short period.
Whilst we would suggest that you speak to us before you decide what type of investment to put in place, it is good to know that more LISA options are coming to the marketplace for those where stocks and shares LISAs may not be appropriate.
Redwood is one of the South’s leading Investments, Pensions, Wills, Trusts & Estate Planning providers and we are dedicated to helping families to Grow, Protect and Enjoy their wealth. With our unrivalled knowledge of Family Wealth and Estate Planning, we can advise on any situation. Join us at one of our Free Public Information Seminars on Wills, Trusts & Estate Planning: Book online Book Me A Place!, Call us on 01489 877 547 or Email firstname.lastname@example.org to book a FREE Initial Meeting with us to review your financial planning needs.