What is the Lifetime ISA bonus?

The Lifetime ISA bonus is a 25% government top-up that you earn on the deposits you make into your Lifetime ISA (LISA), absolutely free. Since the annual LISA allowance is set at £4,000 each tax year, you can earn a maximum annual LISA government bonus of £1,000 to help you buy your first home faster. 

You’ll earn the 25% LISA government bonus on everything you contribute – so save £4 and you’ll get £1 for free. Save £1,000, and you’ll get £250 for free – it’s that easy! 

Here’s a rundown of the tools we have that can help you maximise your LISA government bonus.


Payday boost

Putting aside a percentage of your paycheque every month is a great way to get into the habit of saving regularly. 📅 What you put away completely depends on your personal circumstances and goals, the important thing is to be realistic and save what you can. 

If you make £2,000 a month, putting aside just 5% of that will add up to £1,200 each year. And, with the 25% government LISA bonus, you’ll get a £300 top-up – totally free. With Moneybox, you can set up a payday boost to your LISA to automatically set aside part of your paycheque towards your first home. 🏡


Download the app


Weekly deposits

Making a habit out of contributing to your LISA is a sure-fire way to increase your deposits over time – which will also increase your government bonus. So, aside from a payday boost, you can also set up a weekly deposit through the Moneybox app. 💸

You’re in control of how much to deposit each week, and you can increase or decrease this amount depending on your spending. So, if you’ve got a quiet week ahead, you can increase your deposits. And, if there’s a birthday coming up at the weekend, you can adjust your deposits accordingly. Because while saving for your first home is important, so is enjoying yourself in the present. 


Round ups

To really supercharge your LISA deposits and hit that £4,000 yearly allowance sooner, you can turn on our roundups feature. This will round up your everyday purchases to the nearest pound and deposit the difference into your LISA. 🔁

Many of our customers say that our round ups feature has helped them save hundreds if not thousands of pounds. And the best part is, you don’t even have to think about it. Bought a morning coffee for £2.50? ☕ That’s 50p into your LISA. Do it 30 times in a month, and you’ve saved £15! Try it out today, you’ll be surprised by how much your spare change can add up to over time.


Decide which Lifetime ISA is right for you

The Lifetime ISA is a great way to save for your first home. With Moneybox, you can choose from two types – a Cash Lifetime ISA and a Stocks & Shares Lifetime ISA. Our Cash LISA is market-leading, and has been singled out as Money Saving Expert’s top pick.

If you’re saving your money as cash, you’ll have more certainty over the returns that you can expect each year – which is great for your short to medium-term goals.

Our Stocks & Shares LISA is a way to work towards your first home by investing your money. As a result, you could be exposed to more risk as opposed to saving with a Cash LISA, but there’s also the possibility of higher long-term returns. 


Explore the Moneybox LISA


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. Your account also needs to be open for 12 months before you can withdraw penalty-free for a house purchase. It counts as ‘open’ once you’ve made your first contribution.

All investing should be regarded as longer term (at least 5 years). The value of your investments can go up and down, and you may get back less than you invest.