No, the Cushon Lifetime ISA (LISA) and the Help to Buy ISA (H2B ISA) are different types of savings accounts for first-time home buyers. Both help you save for your first home, but they have different eligibility rules, government bonuses, and account features.
Who can open a Cushon lifetime ISA or Help to Buy ISA?
- Help to Buy ISA: Only first-time buyers could open one before November 2019. You cannot open a new Help to Buy ISA now.
- Cushon lifetime ISA: Any UK resident aged 18 to 39 can open a lifetime ISA. You do not need to have had a Help to Buy ISA before.
How does the government bonus work?
- Help to Buy ISA bonus: The government adds 25 percent to your savings, up to a maximum bonus of £3,000. The bonus is paid when you buy your first home.
- Cushon lifetime ISA bonus: The government adds 25 percent to your deposits, up to £1,000 per tax year until you turn 50. The bonus is paid monthly, letting your savings grow a bit faster.
What are the main rules for Help to Buy ISA and lifetime ISA?
- Help to Buy ISA:
- You could save up to £200 monthly after an initial deposit of up to £1,200.
- The property price must be £250,000 or less, or up to £450,000 in London.
- Only first-time home purchases are allowed.
- Cushon lifetime ISA:
- You can save up to £4,000 per tax year.
- You can use the LISA for properties up to £450,000 anywhere in the UK.
- You must hold the account for at least 12 months before using the savings to buy your first home.
- You can also use a lifetime ISA for retirement and withdraw money without penalty from age 60.
- There is usually a 25 percent withdrawal penalty for other uses, meaning you could get back less than you put in.
Can you have both a Help to Buy ISA and a lifetime ISA?
- You cannot open a new Help to Buy ISA. If you already have one, you can keep saving and claim the bonus when you buy your home, as long as you meet the rules.
- You can open a Cushon lifetime ISA even if you never had a Help to Buy ISA. Anyone aged 18 to 39 can open and pay into a LISA and claim the bonus.
- You can have both a Help to Buy ISA and a lifetime ISA but you can only use the government bonus from one product when you buy a home.