Lifetime ISA
No fees, 25% Government Bonus on your contributions plus our competitive 4% interest rate (AER).
Lifetime ISA
Home savings
£4,321.00
What is a Lifetime ISA?
A Lifetime ISA (LISA) is a UK savings account that helps you save for your first home and/or later life. You can contribute up to £4,000 per year, with a 25% Government Bonus (up to £1,000 annually). The funds can be used for a first home (worth up to £450,000) or when you turn 60. You can open a LISA between the ages of 18 and 39 and keep paying in until aged 50. However, if you withdraw money for anything other than a first home or retirement, you’ll lose the Government Bonus and may face penalties.
A Lifetime ISA is designed for individuals aged 18 to 39 who are either saving for their first home or planning for later life. It’s an attractive option for first-time buyers looking to boost their deposit with a 25% Government Bonus, as the savings can be used to purchase a property worth up to £450,000 after the account has been open for at least 12 months.
It also appeals to those thinking long-term, as funds can be withdrawn tax-free from age 60 to supplement retirement savings. However, it’s important to note that if you save into a Lifetime ISA instead of a pension, you could miss out on employer pension contributions. Whether you're building towards your first home or preparing for the future, a Lifetime ISA can help support your financial goals.
You need to be aged between 18 and 39 to open a Lifetime ISA. But you can keep contributing and receiving the 25% Government Bonus until you turn 50.
The £4,000 you can save into a Lifetime ISA each year counts towards your overall £20,000 annual ISA allowance.
Consider a Lifetime ISA if:
- You are a first-time buyer planning to purchase a property worth up to £450,000, and you want to boost your deposit with a 25% Government Bonus.
- A long-term saver looking to get a cash lump sum in a tax-efficient way from age 60.
- Aged 18 to 39, and comfortable with keeping your money saved or invested until you’re ready to buy a first home or for when you turn 60.
- Someone with emergency savings in place, so you won’t need to access your Lifetime ISA early, avoiding the 25% withdrawal charge.
At a glance
Interest rate of 4% AER
Available for anyone aged 18-39 who is looking to save up for their first home and/or retirement
25% bonus from the Government
Withdraw any time after the first 12 months to purchase your first home
No fees
Grow your long-term savings
Secure your future with smart, steady growth
Maximise your ISA allowance
Make the most of your annual tax-free savings
Transfer an ISA from another provider
Transfer your ISA to us with ease and maximise returns
Please review the documents below to confirm that the Lifetime ISA is suitable for you.
Lifetime ISA FAQs
We've put together a list of questions that people tend to ask before they open a Lifetime ISA.
You can withdraw money from your Lifetime ISA without a penalty if:
- You're buying your first home, at least 12 months after opening your account, and the property is worth £450,000 or less.
- You’re aged 60 or over.
- You’ve been diagnosed with a terminal illness with less than 12 months to live.
If you withdraw money for any other reason, you’ll need to pay a 25% Government charge. This means you could get back less than you put in, as the charge takes away the Government bonus and a portion of your savings.
You can save up to £4,000 per tax year into a Lifetime ISA. This forms part of your overall £20,000 ISA allowance.
Yes, but you can only use the Government bonus from one to buy your first home. Lifetime ISAs generally offer a higher bonus and allow larger contributions.
Yes – as long as your combined ISA contributions don’t exceed the £20,000 annual limit, you can contribute to a Lifetime ISA alongside other ISAs.
No, a Lifetime ISA can only be used to purchase your first home.
A home deposit is the upfront money you pay when buying a property. It’s usually a percentage of the purchase price and is required by your mortgage provider before they approve your mortgage.
You can use the money in your Lifetime ISA to help cover this deposit.
Unity Mutual does not apply any direct fees or management charges to the customer for managing the Lifetime ISA.
Any costs incurred by Unity Mutual for managing the Fund are taken from the Fund in which your Lifetime ISA is invested. These costs are taken into account when setting the interest rate but are not charged to you directly, meaning the rate you see is the rate you receive.
Unauthorised withdrawals fees
Please note that there will be an unauthorised withdrawal fee of 25% if you decided to withdraw from your Lifetime ISA for any other reason than for buying a house, or before you turn 60. This fee is returned in full to HMRC, and is not kept by Unity Mutual.
If you're ready to buy your first home - both you (the investor) and your conveyancer will need to complete the forms below and submit them to insure@unitymutual.co.uk
Need to speak to someone about our Lifetime ISA?
Our friendly customer service team is available to discuss any questions.
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9am-4pm Fri
Or email insure@unitymutual.co.uk
If you need financial advice
If you're unsure whether a product is right for you, it's worth speaking to an Independent Financial Advisor (IFA).
You can find a local advisor at unbiased.co.uk. Keep in mind that financial advice may come with a fee, so be sure to ask about costs before receiving advice.
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