Save or invest for your first home with a Moneybox Lifetime ISA
Save or invest a deposit to buy your first home with the Moneybox Lifetime ISA (LISA). Pay in up to £4,000 each tax year and get a 25% government bonus on all savings. That’s up to £1,000 for free each year you save!
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What is a Lifetime ISA?
The Lifetime ISA (LISA) is a product designed by the government to support people aged 18-39 to buy their first home or put money aside for retirement.
How does the Lifetime ISA work?
- You can save or invest up to £4,000 each tax year and the government will give you a 25% bonus on the amount you contribute, up to £1,000 each tax year.
- You can choose to save cash with a Cash LISA or invest in the stock market with a Stocks & Shares LISA.
- All savings in a LISA are tax-free, as it's a type of ISA.
- Your Lifetime ISA allowance of £4,000 is included in your total annual ISA allowance of £20,000.
- If you’re saving to buy with someone else, you can track your combined savings progress in the app with our Housemates feature.
- We also support digital transfers in from most providers. To find out more, contact our Support team.
What can the Lifetime ISA be used for?
- You can use the Lifetime ISA to buy your first home (up to £450,000) anywhere in the UK, but must have had the account open for at least one year before you withdraw money to do this. The time starts from your first deposit.
- You can also pay into your Lifetime ISA until you turn 50 and withdraw your savings for retirement at age 60. In the ten years inbetween, you'll continue to accrue cash or investment gains/losses, depending on the type of LISA it is.
- If you withdraw money for any reason other than buying your first home or for retirement, you'll pay a 25% government penalty on the amount you withdraw. This means you'll get back less than you've put in. Please note, this excludes investment gains/losses and fees for a Stocks & Shares Lifetime ISA.
Learn about the Moneybox Lifetime ISA
Start your Lifetime ISA journey today
Choose between our Cash Lifetime ISA and get a competitive interest rate on top of your tax-free savings and government bonus, or our Stocks & Shares Lifetime ISA to invest and grow your first home savings over time.
We’ll be here from your first step to your doorstep. When the time comes, we can help you apply for the right mortgage for you from over 90 lenders.
Visit Moneybox Mortgage Advice* to learn more.
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Lifetime ISA questions & answers
Read more information about the Lifetime ISA. If you have any questions, please chat to us in the app or email us via support@moneyboxapp.com.
What is a Lifetime ISA?
The Lifetime ISA (LISA) is a product designed by the government to help you to purchase your first home…
What is the difference between a Cash and Stocks & Shares Lifetime ISA?
We offer two types of Lifetime ISA: A Cash Lifetime ISA – This works like a cash savings account…
When are LISA bonuses paid out?
Lifetime ISA bonuses are paid out at the end of each month, and are based on your total contributions…
How can I use my Lifetime ISA to buy my first home?
Our blog post outlines the full process of withdrawing from a Lifetime ISA 🏡 You can use the amount…
Learn more about the Lifetime ISA
It's important you know
The 25% government withdrawal penalty means that if you withdraw money for any reason other than buying your first home (up to £450,000) or retirement, you’ll pay a government charge of 25% on the amount you withdraw. This means you’ll get back less than you’ve put in. The value of your investments can go up and down, and you may get back less than you invest.
The Lifetime ISA is treated differently for tax purposes when compared to a pension. If you decide to opt out of your workplace pension and instead pay into a Lifetime ISA, you will not benefit from any employer-matched contributions into your LISA and it may affect your current and future entitlement to means-tested state benefits. If considering the Lifetime ISA for the purposes of retirement, we recommend you speak with an independent financial advisor.
Moneybox Mortgage Advice is provided by Moneybox Mortgages Ltd.
Please note your home could be repossessed if you do not keep up repayments on your mortgage.
It's important you know
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest.