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Newcastle Cash Lifetime ISA

The Lifetime ISA is designed to reward people who are saving for their first home, or those who are saving towards retirement, with an interest rate of 0.50% plus a 25% government bonus.

Please note: You will only receive the Government’s 25% bonus if you go on to use the savings in your Lifetime ISA towards the deposit on your first home and/or towards your retirement after saving for a minimum of 12 months. If you make a withdrawal not connected to these two events then a 25% penalty will apply to the amount you withdraw. This will recover the Government’s bonus and you will get back less than you have saved.

Rate

0.50 %
Tax-free PA/AER

Tax-free refers to the contractual rate of interest payable, where interest is exempt from income tax. The tax information provided is based on the current law and HM Revenue & Customs practice, both of which may change. AER stands for the Annual Equivalent Rate, a notional rate which illustrates what the interest rate would be if paid and compounded on an annual basis.

  • Open with: £1
  • 25% withdrawal penalty, unless used to buy your first home or over the age of 60
  • Available to open for 18 to 39 year-olds
  • Transfers from other LISAs now available
  • Apply Online

Summary information

Account Name

Newcastle Cash Lifetime ISA (Issue 3)

What is the interest rate?

Tax-free refers to the contractual rate of interest payable, where interest is exempt from income tax. The tax information provided is based on the current law and HM Revenue & Customs practice, both of which may change. AER stands for the Annual Equivalent Rate, a notional rate which illustrates what the interest rate would be if paid and compounded on an annual basis.

Annually (Variable) 0.50% Tax-free PA/AER

Interest is paid on:

The interest is calculated daily and will be credited to the account annually on the account opening anniversary. 

Can Newcastle Building Society change the interest rate?

We can change the rate of interest payable on this account. The account is a variable rate account which means that the rate of interest paid may change throughout the lifetime of the account. Please refer to section 3 of the Savings General Terms & Conditions which sets out the reasons for which Newcastle Building Society may change the interest and the procedure for doing so.

What would the estimated balance be after the first 12 months of account opening based on a £1,000 deposit?

Annual (Variable)

The estimated balance after 12 months would be £1,005 assuming that:

  • The account is opened with £1,000 and interest starts being earned straight away.
  • No further deposits or any withdrawals are made.
  • The interest rate stays the same for the full 12 months. 

The Government will also pay a 25% bonus on your contributions each month which isn't included in this estimation. 

Please note: This projection is provided for illustrative purposes only and does not take into account the customer’s individual circumstances.

How do I open and manage my account?

Opening your account: Online only.

You must also be either:

  • resident in the UK
  • a Crown Servant (for example a diplomat or civil servant)
  • the spouse or civil partner of a Crown Servant.

The account can only be opened online. Once opened, you will be sent a User ID by email, which will be followed by a letter. You will require this to log in to your account for the first time.

Giving us instructions for your account: Online, by telephone or by post.

The account can be managed online, by telephone or by post.

Payments into the account can be made by cheque or directly from another UK bank or building society.

After your initial payment, you can also make investments by standing order. For new accounts, the initial investment must be received before your 40th birthday.

You can deposit from £1 up to £4,000 each tax year before your 50th birthday. Any deposits made which result in a breach of this subscription limit will be returned back to source in full.

Minimum opening deposit: £1 (this is also the minimum balance eligible for the 25% government bonus)

Maximum opening deposit: £4,000 (this is the maximum Lifetime ISA subscription per tax year). To open a Lifetime ISA, you must be aged 18 or over but under 40. 

We need to receive your initial investment within 30 days of account opening and prior to your 40th birthday (unless you are transferring an existing Lifetime ISA from another provider).

Can I withdraw money?

Withdrawals or account closures before the age of 60 will incur a charge of 25% on the total funds withdrawn – recovering the government bonus – unless it's to buy your first home, you're diagnosed with a terminal illness or in the event of your death. You will also lose some of your own savings and will receive back less than you invested. 

Your Lifetime ISA must be open for at least 12 months before you can withdraw funds from it to buy your first home.

Additional Information

Tax status:  Interest will be paid tax-free. 

  • You will need to make your initial LISA deposit before your 40th birthday (this does not apply to cash LISA transfers). If you make your initial investment following your 40th birthday, your investment will be returned to you and your LISA will be closed.
  • You cannot open a new LISA once you turn 40 years old.
  • Following your initial investment, if you make a withdrawal, your LISA may still remain open with a zero balance.
  • The LISA is a government savings scheme and may change in the future.
  • You are only permitted to open and fund one LISA per tax year.
  • All ISA interest is paid tax-free, which means it’s exempt from Income Tax. Tax rules may change in future.
  • This product may be withdrawn at any time and without notice.
  • If you move abroad you should advise us and cannot make additional subscriptions whilst living outside the UK.

Your LISA limit forms part of your overall ISA limit. 

Ways to apply

Online

It will only take a few minutes to complete your application online.

Apply for a new account Transfer an existing account