Home / Business / First cash Lifetime ISA launched by Skipton Building Society – what rate is offering and how much can you save?

First cash Lifetime ISA launched by Skipton Building Society – what rate is offering and how much can you save?

SKIPTON Building Society has launched the first cash Lifetime ISA, which gives first-time buyers a assisting palm onto the skill ladder.

The comment – which will go live on Thursday – will compensate an annual seductiveness rate of 0.5 per cent, and savers will get a 25 per cent reward any year from the government.

Money saved in the comment can be used towards your first home

Money saved in the comment can be used towards your first home

It is the first cash LISA launched in the UK – and substantially one of the few that will, after major banks including Lloyds, Barclays, RBS/NatWest and Santander ruled out charity a LISA progressing this year.

LISAs are a new assets product that gives anyone between the ages of 18 and 39 the possibility to save tax-free and get a free supervision reward of up to £32,000 to use towards their first home, or retirement.

Savers can put divided up to £4,000 a year, and accept a supervision top-up of up to £1,000 a year on contributions, until they spin 50.

Saving the limit volume in a LISA for 32 years (from age 18) would net you £32,000 of free supervision cash.



Skipton’s comment is only accessible online and can be non-stop with just £1.

First-time buyers who confirm to take out a debt with Skipton will also accept £250 cashback.

Other schemes, such as the Help to Buy ISA, are also accessible to help first-time buyers, and there are some H2B ISAs that kick the 0.5 per cent LISA rate, says Rachel Springall, a financial consultant at Moneyfacts.co.uk.

For example, Barclays’ Help to Buy ISA pays a much some-more inexhaustible 2.25 per cent.

She pronounced that other cash ISAs also offer aloft seductiveness rates, like Virgin Money’s market-leading easy entrance ISA profitable 1.05 per cent.

Springall pronounced Skipton’s understanding may seductiveness to savers looking to save over the short-term, such as first-time buyers.

But “those savers looking to use a LISA for retirement may be wiser to find out a bonds and shares chronicle where they could see much aloft expansion over the longer term,” she added.

Skipton pronounced it anticipates “strong” seductiveness for the product.


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