You’ll pay a withdrawal charge if you take money out for any reason other than the three mentioned above.
The charge is 25% of the amount withdrawn.
This is worked out after your bonus is paid – remember though, you’ll only get the bonus if you take money out 12 months after your first payment into the account.
So if you get a bonus, and had £1,000, you’d have a total of £1,250 to take out. The 25% penalty charge is £312.50, so you’d only get £937.50 in your pocket. This means you’d lose some of your savings and get back less than you invested.
That’s why a Lifetime ISA is only really suitable if you want to use it to help buy your first home, or to save for retirement.