If you have a lifetime ISA account you can save £4,000 every year and the government gives you a 25% bonus on top of the money you save – that’s £1,000 free
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Savers have just hours left to get £1,000 free from the Government to use towards their first home or their retirement.
The money is issued as a bonus to those who max out their Lifetime ISA (LISA) each tax year.
If you have a LISA you can save £4,000 every year and the Government gives you a 25% bonus on top of the money you save.
That means you can get £1,000 free every tax year – or £2,000 free if there are two of you and both have a LISA account, which you can max out.
The bonus is paid into your LISA monthly and your money also earns interest – but you only get a bonus on your contributions, no interest.
You get the bonus even with smaller amounts. So if you can save just £1,000 in a year, the state will give you £250.
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But time is running out to make the most of your free LISA money as the current tax year ends today (5 April). The new tax year starts tomorrow (6 April).
You can open a LISA account if you are between 18 and 39 years old and the money can only be used to pay into the first apartment or for retirement provision.
If you withdraw your money for reasons other than these, you will lose your bonus and pay a 25% penalty, which is around a 6% loss.
Have you had trouble depositing into a Lifetime ISA account before the deadline? Let us know: firstname.lastname@example.org
The maximum bonus is £33,000 if you open at 18 and max it out by the time you are 50 – you cannot deposit into a LISA over the age of 50.
If you’re saving for your first home, you won’t find a regular savings account from a bank or lender that pays 25% interest.
The best easy access account right now is Chase Money, which pays 1.5% interest and has no minimum deposit. You can store a maximum of £25,000.
The second largest payer is Cynergy Bank, which pays 1.1%, has a minimum deposit of just £1 and you can deposit £1 million.
Or if you have a smaller sum, the Virgin Money M Plus account tops both at a rate of 2.02% – but you can only deposit up to £1,000.
If you can afford to lock away your money for an entire year, the top players are Tandem and Oxbury, each paying 1.8%.
JN Bank offers you 2.11% on their two-year fixed account if you deposit at least £1,000, or the best five-year fix is from Secure Trust Bank or Monument, both of which pay 2.4%.
https://www.mirror.co.uk/money/last-day-savers-free-1000-26636512 Last day for savers to get £1,000 free from the government before the end of the tax year