A Lifetime Individual Savings Account (LISA) is a type of savings account. It helps people aged 18 to 39 save for their first home or retirement. You can save up to £4,000 each year, and your savings grow tax-free.
The government adds a 25% bonus to your savings, up to £1,000 each year. You must save in your LISA for at least one year before using it to buy your first home.
You can use your LISA savings to buy your first home if:
- The property costs £450,000 or less
- Your LISA has been open for at least one year
If you meet these rules, you can take out your money with no charges. For retirement, you can access your money after you turn 60.
Taking your money out for other reasons before age 60 will incur a 25% withdrawal fee on the amount you take out.