Life­time Isa pays savers top rate

The Daily Telegraph - Your Money - - MONEY - Sam Barker

Choice is grow­ing for savers as New­cas­tle Build­ing So­ci­ety has be­come the third in­sti­tu­tion to of­fer a cash Life­time Isa ( Lisa), with a mar­ket-beat­ing rate.

The Lisa al­lows those aged 18 to 39 to save up to £4,000 each tax year, with a gov­ern­ment top-up of 25pc on con­tri­bu­tions un­til the age of 50.

The cash can be used to buy a first home or to boost re­tire­ment in­come.

The New­cas­tle ac­count pays an an­nual in­ter­est rate of 1.1pc. Ri­val deals from Skip­ton and Not­ting­ham build­ing so­ci­eties both pay 1pc.

The New­cas­tle Lisa can be opened on­line with as lit­tle as £1.

Cur­rently, the New­cas­tle Lisa must be opened di­rectly with the mu­tual and ex­ist­ing Isas can­not be trans­ferred to it.

How­ever, the ac­count is a “lim­ited is­sue”, ac­cord­ing to New­cas­tle’s web­site.

Rachel Springall of Money­facts, the fi­nan­cial re­search firm, pointed out that first-time buy­ers could get in­ter­est of up to 2.55pc from a Help to Buy Isa and still get the 25pc top-up from the Gov­ern­ment.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.