Newcastle Cash Lifetime ISA (Issue 3)

The estimated balance after 12 months would be £1,003 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. 

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 LISA subscription per tax year). To open a LISA, you must be aged 18 or over but under 40. We need to receive your initial investment prior to your 40^th birthday (unless you are transferring an existing LISA from another provider). 

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.

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.

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.

Withdrawals or account closures before the age of 60 will incur a charge of 25% on the total funds - 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.

Tax Status:  Interest will be paid gross*. 

• You will need to make your initial LISA deposit before your 40^th birthday.  (This does not apply to cash LISA transfers).   If you make your initial investment following your 40^th 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.

• The AER** allows you to compare the interest rates on savings accounts. The higher the AER, the better the return on your savings.

• 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.