Cash Lifetime ISA top FAQs answered

We’ve answered the top questions from new Lifetime ISA customers to get you started on your home-buying journey.

What is my Lifetime ISA allowance?

Your Lifetime ISA allowance is how much you can deposit into your Lifetime ISA each tax year. Everyone’s annual Lifetime ISA allowance is the same: £4,000. This is part of your annual £20,000 ISA allowance.

So if you max out your Lifetime ISA with £4,000 in a tax year, and you’ve not contributed into another type of ISA yet, you’ll have £16,000 of your ISA allowance remaining for your other goals..

Here’s a breakdown of the different annual deposit limits for different types of ISA.

How do I get my £1,000 bonus?

The government will give you a 25% bonus on everything you put into your Lifetime ISA – so for every £4 you contribute, you’ll get £1 for free! Since you can deposit £4,000 into your Lifetime ISA each tax year, you can earn up to £1,000 as a free bonus. 

You can earn your bonus in multiple payments throughout each tax year – don’t think you have to deposit £4,000 in one go to earn the full £1,000 bonus!

When will I get my Lifetime ISA bonus?

Your Lifetime ISA bonus is paid out monthly, and the amount you receive at the end of each month is based on your total contributions in the previous month. This means you’ll earn interest on your Lifetime ISA bonus as you receive it throughout the tax year – so you’ll be able to watch your savings grow in real time!

Learn more about when Lifetime ISA bonuses are paid out

 

Can I transfer in a Lifetime ISA or ISA from elsewhere? 

Yes you can! It only takes a few minutes to request an ISA transfer and you can do it all in-app, with no paper forms. You can also transfer a Help to Buy ISA into a Moneybox Lifetime ISA in the same way.

 

Request transfer

 

Things to know about your Lifetime ISA

You can use your Lifetime ISA to buy your first home up to the value of £450,000 anywhere in the UK, or to save for retirement. Your Lifetime ISA must be open for at least 12 months before you can use it to buy your first home,  it’s worth putting even just £1 in now if you haven’t already made a deposit to start the clock. 

We’ve got more home-buying content to explore in-app. Or, you can read through our first-time buyer guide – start with lesson one, which is all about saving for your deposit. 

 

Explore content

 

A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid into your Lifetime ISA 

Remember: if you opt for the S&S LISA, all investing should be long term (min. 5 years). The value of your investments can go up and down, and you may get back less than you invest.