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 👇

Yearly contribution limit:

• Lifetime ISA (LISA): £4,000

• Help to Buy (HTB): £2,400 (£3,400 in year one)

Maximum one-off deposit:

• LISA: None, you can deposit the full £4,000 annual limit in one go, should you wish

• HTB: You can deposit up to £1,000 in your first month (and £200 per month maximum after this)

Maximum bonus you can receive:

• LISA: £32,000 if maximum contributions over maximum possible time period is assumed

• HTB: £3,000

When do you get the government bonus?

• LISA: 25% of any contributions made are added to your LISA each month

• HTB: When you purchase the home

Maximum property value:

• LISA: £450,000

• HTB: Outside of London £250,000, inside London £450,000

Who can open an account?

• LISA: Those aged 18-39

• 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?

• LISA: Yes - choose from Cash or Stocks & Shares

• HTB: No - cash savings only

When can you use the money to buy a house?

• LISA: After the account has been open for at least 12 months

• HTB: Once you’ve saved £1,600

Can you withdraw for a reason other than buying your first home?

• 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)

• HTB: Yes, but you don’t get the bonus on any withdrawn amount

Are there any withdrawal penalties?

• LISA: Yes - 25% penalty on all non-qualifying withdrawals (except in the case of terminal illness)

• HTB: No - but remember, you will not receive any government bonus on amounts withdrawn