Lifetime Individual Savings Account (Lifetime ISA)
A Lifetime Individual Savings Account (Lifetime ISA) is a tax-free savings account designed to help first time buyers save a deposit for their first home (it can also be used to save for retirement).
We have teamed up with Nude Finance Limited to offer you an app-based Lifetime ISA account where you can save for your deposit as well as getting money-saving ideas that could help you reach your savings goal sooner.
- A Lifetime ISA is Government boosted, for every £4 put in the Government will top it up by an extra £1 (the maximum Government bonus is £1,000 per year). You can add up to £4,000 a year into a Lifetime ISA.
- Tax-free, the interest earned on your savings with a Nude Lifetime ISA is tax-free.
- UK wide, you can buy your first home or land up to the value of £450,000 anywhere in the UK.
Tax treatment depends on the individual circumstances and may be subject to change in the future.
Things to think about
- The Nude Finance Lifetime ISA is a cash Lifetime ISA and is eligible for the Financial Services Compensation Scheme up to £85,000 in the event that Nude Finance are no longer trading.
- You need to open your plan at least 12 months before you are planning to buy your home.
- If you seek a withdrawal for any reason other than your first home purchase (or retirement purposes) a 95-day withdrawal notice period is required. You will also be subject to a 25% government early withdrawal penalty.
- There is a monthly membership fee of £2. This will be taken directly from your ISA and will total £24 each year. If your Lifetime ISA earns less than £24 interest over the year, its value will go down. To give you an idea of the numbers, if you have £1,000 in the Lifetime ISA for the year, and the interest rate is 3% as it is currently, you would earn £30 interest.
- To apply you should be between 18 and 39 and you can pay into your Lifetime ISA until you are 50. You must make your first payment before you are 40.
- Whatever you pay into your Lifetime ISA will count towards your overall ISA limit for the tax-year. This is currently £20,000.
To help you along the road to home ownership, The Lifetime ISA from Nude Finance Limited also offers you an additional range of key benefits within their app:
- Ideas, personalised ideas that can help you put more money towards your first home.
- Team up, whether you’re a couple, best friends or family, you can link your Nude accounts and work towards building a deposit together.
- Learn, all the stuff about money and buying a home that you wish they taught us in school.
- Explore, keep track of all your spending and income across multiple accounts.