Newcastle Cash Lifetime ISA (Issue 3)
Important Lifetime ISA Withdrawal Information
On the 1st May 2020 HM Treasury announced Lifetime ISA holders whose income had been affected by the COVID-19 (coronavirus) pandemic would pay a reduced withdrawal charge if accessing funds early.
Between 6th March 2020 and 5th April 2021 (inclusive), to help people who need to access to their money earlier as a result of the outbreak the charge to make an unauthorised withdrawal from a LISA has been reduced from 25% to 20%. This will mean you will only have to pay back any government bonus you have received and the money you have invested will not be affected.
However, LISA holders are strongly encouraged not to draw out money from their LISA unless it is absolutely essential. Find out more
The Lifetime ISA is designed to reward people who are saving for their first home and those who are saving towards retirement, with an interest rate of 0.35% plus a 25% government bonus.
Please note: After 5th April 2021, 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.