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Liftime savings account ready for launch in April

24 January 2017
Issue: 4584 / Categories: News

Government will add 25% to funds in the new savings plan.

The Savings (Government Contributions) Bill received royal assent on 16 January. The act confirms the lifetime individual savings account (LISA) will launch in April.

Under the scheme adults under 40 will be able to save up to £4 000 a year with the government giving them a 25% top-up. They can withdraw the savings including the bonus to put towards a first home or leave them in the account until they reach 60.

For 2017-18 only savers will be able to transfer help-to-buy ISA savings into a lifetime ISA without them counting towards the £4 000 contribution limit.

Danny Cox chartered financial planner at Hargreaves Lansdown said: ‘The LISA will be particularly attractive to savers and investors looking to buy their first home and to those looking to complement their existing pension plans.

‘There are more than 500 000 help-to-buy ISA accounts and...

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