The Lifetime ISA (LISA) is a product designed by the government to help you purchase your first home or save towards retirement.

You can pay in up to £4,000 per tax year and will receive a 25% government bonus on whatever you contribute. So, for every £4 you save, you get £1 for free! If you pay in the yearly maximum of £4,000 you’ll receive a £1,000 bonus.

We offer two types of LISA:

• A Cash Lifetime ISA. A Cash LISA works like a cash savings account in that you pay in money and earn interest on it. Our Cash LISA has an interest rate of 5.00% for new customers, made up of a 4.00% AER (variable) interest rate and a 1.00% introductory bonus rate for your first year.

• A Stocks & Shares Lifetime ISA. With a Stocks and Shares LISA, rather than earning interest, you invest your money in funds. Investing over the long term (5 or more years) can offer higher returns, though remember that the value of investments can go up and down, and you may get back less than you invest.

An important factor to bear in mind for the LISA is that withdrawing for any reason other than buying a first home or retirement (please see the section ‘Withdrawing from the Lifetime ISA’ for details on what qualifies here); will incur a 25% government penalty on the amount you withdraw (except in the case of terminal illness), so you should only pay in funds you want to use for your first home or retirement.

Your account also needs to be open for 12 months before you can withdraw penalty-free for a property purchase. The LISA counts as ‘open’ once you’ve made your first contribution.