Help to Buy ISA or Lifetime ISA?

You can’t open a new Help to Buy ISA anymore, but if you already have one, you can keep saving into it until 30 November 2029 and claim your bonus until 1 December 2030.

• It’s designed for first-time buyers over 16 who are saving for a home deposit.
• The government adds 25% to your savings, up to a £3,000 bonus.
• You can use it to buy a home worth up to £250,000, or up to £450,000 in London.
• The bonus is paid when you buy a home, and the funds are available upon completion.
• If you withdraw for reasons other than buying your first home, you won’t get the bonus, but there are no government penalties.

• The Lifetime ISA is designed to help people aged 18 to 40 save for their first home or retirement. You can contribute until age 50 and access the money without penalty for other reasons at age 60.
• The government adds a 25% bonus to what you save, up to £1,000 per year if you save the maximum £4,000 annually.
• You can use it to buy a home worth up to £450,000 anywhere in the country.
• The bonus is paid monthly, and the funds are available when you exchange contracts on a home purchase.
• There’s a 25% government charge if you withdraw before age 60 for reasons other than buying your first home, unless you are terminally ill with less than 12 months to live.
• After age 50, you can’t contribute or earn the 25% bonus, but your account stays open and continues to earn interest or investment returns.

Yes, you can transfer your Help to Buy ISA or Lifetime ISA from your current provider. You’ll need to check that the bank, building society or credit union you’re  looking to move to offers the equivalent ISA and accepts transfers in.

You can transfer money from your Help to Buy ISA to a Lifetime ISA, but it will count towards the £4,000 limit that can be put in during one tax year.

You can also transfer funds into your Help to Buy ISA from another type of ISA, but you must follow the Help to Buy ISA’s monthly deposit limits and the terms and conditions of your other ISA.

Transferring from a Lifetime ISA to a Help to Buy ISA might result in a 25% government penalty on your savings.

A Lifetime ISA must be open for a year before it can be used, so switching from a Help to Buy ISA to a new Lifetime ISA will reset that waiting period.

The Help to Buy ISA will pay out a maximum bonus of £400 after three months, once you’ve saved a total of £1,600. For example, you could deposit £1,200 in the first month and then £200 in both the second and third months.

If you’re over 40 or under 18, you can’t open a Lifetime ISA, even if you’re a first-time buyer.