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Skipton BS Lifetime ISA available this Thursday
Skipton BS Lifetime ISA available this Thursday

Skipton BS Lifetime ISA available this Thursday

Can see this getting voted cold due to some negativity around LISA's but Skipton are releasing the first Cash Lifetime ISA this Thursday, with those who registered their interest receiving emails today allowing you to apply early.

Interest rate: 0.5% AER variable
Interest paid: Annually
Opening restrictions: Must be aged 18-39 to open it
Access: Online only
Min pay-in: £1 | Max pay-in: £4,000/yr
Accepts transfers: Yes
FSCS protection: Full £85,000 UK savings safety guarantee

Personally, I'll be transferring my Help to Buy ISA in this financial year (there's a few tricks posted by Martin Lewis on this...). By June 2018, those who have paid the maximum on both the H2B and LISA since launch, will have £3,100 towards a house deposit.

The bonus can also be used for retirement, but this should not be treated as a replacement for a workplace pension.

For full info, check out MSE (http://www.moneysavingexpert.com/savings/lifetime-ISAs#skipton)

17 Comments

I wasn't expecting a super high interest rate, but 0.5% is extremely poor.

Original Poster

happymanuk

I wasn't expecting a super high interest rate, but 0.5% is extremely poor.



Yep, it's pretty rubbish but all interest rates are. My standard TSB cash isa that I've had for years is now 0.05%!

I'll keep my nationwide H2B open until December when it pays 2% and then transfer...

Don't the H2B bonus' pay out after purchase so you cant use it towards the deposit?

how come many are forgetting the 25% contributions from the government when put towards a property for first time buyers with added option to put towards the mortgage and house deposit? granted this is not for flexible or high savings rate but it is a very compelling option for those saving towards a house.

rhfernandez

how come many are forgetting the 25% contributions from the government … how come many are forgetting the 25% contributions from the government when put towards a property for first time buyers with added option to put towards the mortgage and house deposit? granted this is not for flexible or high savings rate but it is a very compelling option for those saving towards a house.



The 25% ain't gonna do much when it comes to buying a gaff, yes free money up to 32k free if you start when you 18 and stop when you 50. But with house prices up nearly 100k from 2013, you need more than 25%, more like 100%

0.5%!
Think I'll stick with the 3.5% on my help to buy ISA for now at least.

Can't decide whether to go for this or the Nutmeg Stocks & Shares one.

Stick it all in S&S ISA, on a passive world index tracker (Accumulation) fund, you'll get a LOT more than 0.5% over the long term.


Original Poster

Roger_Irrelevant

Stick it all in S&S ISA, on a passive world index tracker (Accumulation) … Stick it all in S&S ISA, on a passive world index tracker (Accumulation) fund, you'll get a LOT more than 0.5% over the long term.



But for those who want to buy in 12 month time, you may not want to take the risk!

Original Poster



But for those who want to buy in 12 month time, you may not want to take the risk!
Roger_Irrelevant

Stick it all in S&S ISA, on a passive world index tracker (Accumulation) … Stick it all in S&S ISA, on a passive world index tracker (Accumulation) fund, you'll get a LOT more than 0.5% over the long term.

rhfernandez

how come many are forgetting the 25% contributions from the government … how come many are forgetting the 25% contributions from the government when put towards a property for first time buyers with added option to put towards the mortgage and house deposit? granted this is not for flexible or high savings rate but it is a very compelling option for those saving towards a house.



It's still 'free money'. As mentioned if you opened help to buy when they started in December 2015 and fully contributed to it and rolled it in to the LISA, in just over two and half years, you have over a £3k bonus if you can pay in the full amount (4k) when it gets paid monthly in 18/19. If you played it right, it's worth having.

Original Poster



But for those who want to buy in 12 month time, you may not want to take the risk!
Roger_Irrelevant

Stick it all in S&S ISA, on a passive world index tracker (Accumulation) … Stick it all in S&S ISA, on a passive world index tracker (Accumulation) fund, you'll get a LOT more than 0.5% over the long term.

rhfernandez

how come many are forgetting the 25% contributions from the government … how come many are forgetting the 25% contributions from the government when put towards a property for first time buyers with added option to put towards the mortgage and house deposit? granted this is not for flexible or high savings rate but it is a very compelling option for those saving towards a house.

promithius

Don't the H2B bonus' pay out after purchase so you cant use it towards … Don't the H2B bonus' pay out after purchase so you cant use it towards the deposit?



It's still 'free money'. As mentioned if you opened help to buy when they started in December 2015 and fully contributed to it and rolled it in to the LISA, in just over two and half years, you have over a £3k bonus if you can pay in the full amount (4k) when it gets paid monthly in 18/19. If you played it right, it's worth having.


Yes, which is a massive downvote for H2B. The LISA can be used for the deposit however.

happymanuk

Can't decide whether to go for this or the Nutmeg Stocks & Shares one.



​i got the Nutmeg one 2 months ago & its gained nearly 4% (£158) I'm quite pleased with it so far

happymanuk

Can't decide whether to go for this or the Nutmeg Stocks & Shares one.



​Stocks and shares would be the way to go for saving for retirement but cash, even with rates so low, would be far more suitable for saving over the short term. Hopefully more providers will be offering lifetime cash ISAs before the end of the financial year.

csf

The 25% ain't gonna do much when it comes to buying a gaff, yes free … The 25% ain't gonna do much when it comes to buying a gaff, yes free money up to 32k free if you start when you 18 and stop when you 50. But with house prices up nearly 100k from 2013, you need more than 25%, more like 100%



​think you miss the point. House prices aside, this is one of the most efficient ways in propping up your deposit of you're looking to put towards a property. if you can max 4k a year that's 1k of bonus that outstrips any other savings product FOR housing. Your point is the same across whichever savings product you choose with the increase in house prices. at least LISA gives you a significant chunk a year with those that can max yearly subscription.

Is the 25% government contribution fixed? I'm wondering if successive governments will be permitted to reduce that or scrap it entirely if they find it a significant drain.

Original Poster

whw

Is the 25% government contribution fixed? I'm wondering if successive … Is the 25% government contribution fixed? I'm wondering if successive governments will be permitted to reduce that or scrap it entirely if they find it a significant drain.



I guess potentially yes, but the bonus is paid monthly from next year so you'd bank your 25% before any changes and then roll on to a new bonus amount.

An advert surely.
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