Please note that, as of November 2019, new Help to Buy ISAs can no longer be opened. However, if you already have a Help to Buy ISA open, the main differences two types of accounts differ are as follows š
Yearly contribution limit:
ā¢ Lifetime ISA (LISA): Ā£4,000
ā¢ Help to Buy (HTB): Ā£2,400 (Ā£3,400 in year one)
Maximum one-off deposit:
ā¢ LISA: None, you can deposit the full Ā£4,000 annual limit in one go, should you wish
ā¢ HTB: You can deposit up to Ā£1,000 in your first month (and Ā£200 per month maximum after this)
Maximum bonus you can receive:
ā¢ LISA: Ā£32,000 if maximum contributions over maximum possible time period is assumed
ā¢ HTB: Ā£3,000
When do you get the government bonus?
ā¢ LISA: 25% of any contributions made are added to your LISA each month
ā¢ HTB: When you purchase the home
Maximum property value:
ā¢ LISA: Ā£450,000
ā¢ HTB: Outside of London Ā£250,000, inside London Ā£450,000
Who can open an account?
ā¢ LISA: Those aged 18-39
ā¢ HTB: Anyone over 16, however, as of November 2019 new Help to Buy ISAs can no longer be opened
Does the account have investment options?
ā¢ LISA: Yes - choose from Cash or Stocks & Shares
ā¢ HTB: No - cash savings only
When can you use the money to buy a house?
ā¢ LISA: After the account has been open for at least 12 months
ā¢ HTB: Once youāve saved Ā£1,600
Can you withdraw for a reason other than buying your first home?
ā¢ LISA: After 60 - yes with no penalty. Before 60, a government penalty of 25% is applied to the withdrawal amount (except in the case of terminal illness)
ā¢ HTB: Yes, but you donāt get the bonus on any withdrawn amount
Are there any withdrawal penalties?
ā¢ LISA: Yes - 25% penalty on all non-qualifying withdrawals (except in the case of terminal illness)
ā¢ HTB: No - but remember, you will not receive any government bonus on amounts withdrawn