Richard Curtis considers the ‘pros’ and ‘cons’ of lifetime individual savings accounts.
The lifetime individual savings account (LISA) was introduced in the UK in 2017 as a long-term investment for those between the ages of 18 and 39.
The maximum annual subscription is £4,000 (which counts towards the annual ISA limit) and the government will add £1 for every £4 invested. Funds can be held as cash, stocks and shares or a combination of these. No further contributions to the LISA are possible after age 50, but the account will remain open and savings will still earn interest or investment returns.
A penalty-free withdrawal can only be made from a LISA if the saver is buying a first home, is aged 60 or over, or is terminally ill with less than 12 months to live. Aâ¯LISAâ¯can therefore be used, with savings enhanced by government contributions, to save the deposit for a
