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Help to buy: ISA |
Lifetime ISA |
Who can hold an account? |
UK residents aged 16+ and anyone who opened an account before the closure on 30th November 2019. Sorry, you can't open an account after this date.
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UK residents 18-39 years old.
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Can I open a joint account? |
No, but if you're buying your first home with another first-time buyer, and you both hold either of the accounts, you'll each benefit from the 25% Government bonus.
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Where can I apply?
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Sorry, you can't open this type of account anymore.
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You can set one up using our Beehive Money app.
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What can I use the account for? |
It's only for first-time buyers. |
For buying a first home, building a retirement fund, or both. If you've already bought a house, you can still set up an account for a retirement nest egg. Or, use your LISA to buy your first house, then continue saving until you turn 50.
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How much do I need in order to open an account?
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You can't open an account anymore.
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Just £1. |
How much can I save each year?
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Up to £2,400 a year, topped up to £3,000 with the Government bonus.
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Up to £4,000 a year, topped up to £5,000 with the maximum Government bonus.
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Can I deposit lump sums?
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Sadly not, only monthly savings of £200
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Yes. |
Tax status |
Tax-free.
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When is the account available until? |
You can hold your account, and claim your bonus, until 30th November 2030.
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The foreseeable future. Note that you can only pay into the account, and earn the Government bonus, until you turn 50 — though after this, it’ll still earn interest. You can then withdraw the retirement fund at age 60.
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What is the maximum value of the property I can buy?
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£450,000 - London
£250,000 - rest of the UK
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£450,000 throughout the UK |
When can I use my ISA to buy my home? |
Anytime, once you have over £1,600 saved up. |
Anytime after holding the account for 12 months or more without being charged a 25% withdrawal fee. |
Can I use the bonus for my first home exchange deposit?
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No, unfortunately not. That's because it's released after completion.
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Yes, but you must complete on the property within 90 days of your conveyancer receiving the funds. You can read more about it in our Help Centre, just ask BeeBot how to use your Lifetime ISA to buy your first home.
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How much bonus can I earn? |
You could earn a maximum bonus of £3,000.
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The 25% Government bonus is worth up to £1,000 per year, meaning if you hold the account from age 18 and pay the £4,000 limit each year, you could earn a total Government bonus of £32,000 over the lifetime of the account.
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When do I get the 25% bonus?
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Once the house sale has completed – it's all arranged by your solicitor once you’ve informed your Help to Buy: ISA provider that you’d like to close your account.
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Whenever you make a deposit (but allow up to 9 weeks for HMRC to process and pay your bonus).
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Maximum savings |
There's no maximum saving amount, but the bonus is only payable on the first £12,000 you save.
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£128,000 (32 years of £4,000 saving a year).
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What is the interest rate on savings with Beehive Money?
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Beehive Money doesn't have the Help to Buy: ISA as you are unable to open new accounts anymore - sorry about that. This article is just in case you already have an account with a different provider. If you do, interest is only paid on your balance, not the bonus. You’ll also earn compound interest.
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0.80% tax-free p.a./AER paid annually.
Compound interest earned is on the bonus as well as your savings.
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Can I withdraw for another reason if I change my mind?
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Yes. While you'd forfeit the bonus, you'd still have your savings and any interest earnt.
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If you take out your savings for pretty much any reason other than a deposit on a first home, or for retirement at age 60, you'll be charged a 25% Government fee on the withdrawal. This can be risky, as you might get back less than you put in.
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Is there a notice period for withdrawals?
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No. |
No, but you'll need to have held the account for 12 months or more, or you risk a 25% Government withdrawal fee. It’s also advisable to start your LISA withdrawal at least 5 weeks before you will need the funds to complete on your house purchase as withdrawals can take up to 30 days.
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Is there a charge for withdrawals?
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No, as long as you leave at least £1 in the account. Bear in mind that you can only pay in £200 per month, and if you take money out, it'll count towards the allowance. So, if you paid in £100 and withdrew £50, you'd only be able to pay £100 in for the rest of the month.
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No, not if you’re using the money for a first home after 12 months or a retirement fund at 60. Otherwise, a 25% Government fee is charged on the withdrawal, so you could get back less than you paid in.
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