Lifetime ISA calculator
Find out how the government bonus could help you save.
Important information: The annual growth rate actually achieved will depend on the performance of the investments chosen. Results are based on a charge of 1.25% including our platform charge and presumed charges involved with the underlying investments. They do not take account of inflation.
Remember the value of investments can fall as well as rise so you could get back less than you invest.
Once opened, you can contribute £4,000 each year up until the day before your 50th birthday and the government will add an extra 25% bonus – up to £1,000 each year.
The maximum you can contribute to your Lifetime ISA is £4,000 per year. This makes up part of your overall ISA allowance (£20,000 across all ISAs) for the current tax year.
Any contributions you make to a Lifetime ISA before your 50th birthday will receive a 25% bonus from the government. Since you can contribute up to a maximum of £4,000 to a Lifetime ISA each tax year, the maximum bonus each year will be £1,000 (25% of £4,000).
For contributions made during the 2017/18 tax year (between 6 April 2017 and 5 April 2018), the bonus will be paid within four weeks of 6 April 2018. From the 2018/19 tax year onwards, the bonus will be paid monthly.
Please note, any Lifetime ISA bonus will not count towards either the £4,000 Lifetime ISA limit or the overall £20,000 ISA limit.
Further, transferring a Help to Buy ISA to a Lifetime ISA in this tax year could mean access to more government bonus. Find out more
Anyone aged between 18 and 39 can open a Lifetime ISA and while you are under the age of 50 you can contribute up to £4,000 a year and receive an added 25% government bonus.
You can withdraw the money for an eligible property purchase, after age 60 or if you are diagnosed with a terminal illness. Withdrawals made at any other time will incur a 25% government withdrawal charge, except withdrawals in the 2017/18 tax year (see below).
If you incur a withdrawal charge this may mean you receive back less than you have invested. For example, you contribute £4,000 and receive a £1,000 bonus. You then withdraw this £5,000 and are subject to a £1,250 government withdrawal charge and get back £3,750.