What’s a LISA?
LISA (pronounced lie-sa) is short for Lifetime ISA. It’s a tax-free savings account and Government scheme designed to help you save for your big milestone: your first home.
If you are 18-39 and looking to save for your first home, a Homebuyer Lifetime ISA could be ideal. This tax-free savings account is boosted by a 25% Government bonus, which means as well as earning interest, you could earn up to £1,000 a year in bonuses alone until you turn 50 – although hopefully it won’t take that long for you to save your deposit.
It works like this. For every £4 you save, the Government will add £1. So each tax year you can put an annual total of £4,000 into your Beehive LISA and you can earn up to £1,000 in bonuses.
Things to know
£50 cashback for switching accounts is available to LISA customers who have saved a minimum of £10,000 for their first house deposit, and who are switching their existing Lifetime ISA account from another provider to Beehive Money. Terms and conditions apply, of course.
Lifetime ISA FAQs
Tax-free savings (also known as Individual Savings Accounts or ISAs) accounts are simple, really: with accounts like these you won’t have to pay tax on the interest you earn. There’s also a cap on how much you can add each tax year, depending on your circumstances, and keep in mind that the tax rules around ISAs could change.
AER, or Annual Equivalent Rate, is designed to make savings accounts easier to compare. The AER will show you what your interest rate would be if interest was paid back into your account. For accounts that pay interest annually, the gross rate and the AER should be the same. For accounts that pay interest monthly the AER will be slightly higher than the gross rate. This is because if you leave your monthly interest in the account you’d start to earn interest on the interest.