Introducing the Newcastle Cash Lifetime ISA

Save smart for your first home or retirement

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Introducing the Newcastle Cash Lifetime ISA

Let Newcastle Building Society help you save smart for your first home or retirement, boosting your savings with a UK Government-backed bonus of 25% - tax free, plus interest.

Available for 18 to 39 year olds to open, a Lifetime ISA (LISA) enables you to save up to £4,000 tax-free each year, which is topped up by the Government’s 25% bonus, up to your 50th birthday.

What’s the catch? 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. 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 may get back less than you have saved.

For those saving to buy their first home, you must be saving for over 12 months to use the funds. If you are saving for retirement then you’ll be able to access your savings penalty free upon your 60th birthday.

Your Lifetime ISA limit forms part of your overall ISA limit. The Newcastle Cash Lifetime ISA is managed online, by telephone or post. You must apply for the account online and have a minimum opening deposit of £1.

It’s OK to change your mind – you are able to cancel the account within 30 days of the opening date without incurring any penalties.

 

How the Government bonus works

HMRC calculate bonus payments from the 6th of the month to the 5th of the following month based on what you’ve paid in.

Your bonus is paid into your account within 14 days of the 20th day of the following month. Interest is paid by Newcastle Building Society on an annual basis.

The Lifetime ISA is a long-term savings product designed to incentivise saving towards your first home and/or retirement. If you withdraw for any other reason (excluding terminal illness with less than 12 months to live or death) you will incur a charge of 25% on the total funds - recovering the Government bonus, plus an extra charge penalising you for the withdrawal.

You can transfer your lifetime ISA to another Lifetime ISA provider without incurring the withdrawal penalty. (Please note: Newcastle Building Society does not currently accept transfers into its cash Lifetime ISA.)

As the Lifetime ISA is a Government savings scheme, it may be subject to change. This account is covered by The Financial Services Compensation Scheme.

To find out more about the Government’s Lifetime-ISA scheme, visit lifetimeisa.campaign.gov.uk.

Looking for something more flexible?

We offer a range of saving options, covering a range of needs. Check out our account types here.

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A step closer to your first home

For over 150 years Newcastle Building Society has been committed to helping people in our communities own their homes.

A UK Government backed ISA through Newcastle Building Society is one of the best ways to save for the deposit needed to secure the home of your dreams.

What you need to know:

Eligibility

  • You must be 18 to 39 years old when opening the account.
  • You must be a UK resident, unless you or your spouse/civil partner is serving overseas for the UK Crown.
  • You must be a first-time buyer.
  • The property must be purchased in the UK.
  • Your property must be purchased through a residential mortgage (i.e. not Buy to Let).
  • You must occupy the property as your main residence.

Conditions:

  • Your new home must not exceed the value of £450,000.
  • You can own more than one Lifetime ISA. You can only open one Lifetime ISA per tax year,
    and put money into one Lifetime ISA per tax year.
  • If you’re buying with someone else who is also a first-time buyer you can each open your own Lifetime ISA.
  • If you have a Help to Buy and Lifetime ISA, you can only use one bonus towards your house purchase.

Not sure if this account is right for you?

First time buyers who save with Newcastle Building Society have the option of two Government savings schemes. However, the Government bonus can only be claimed on one of these schemes. The table below outlines the difference between the two to help you make the right choice. Find out more about our Help to Buy ISA.

Find out more

 

An extra boost for later life

Putting away funds now for your future with the Newcastle Cash Lifetime ISA.

The potential of a Lifetime ISA means that an 18-year-old saving £77 per week until their 50th birthday can earn the maximum £32,000 Government bonus.

You may have a change of heart and no longer wish to save for your first home, your savings could then be used for later life. Maybe a once-in-a-lifetime trip to tick off your bucket list, or a healthy nest egg to complement a pension pot, saving now will ensure you make the most out of your later years.

What you need to know, if you’re saving for retirement

Eligibility

  • You must be 18 to 39 years old when opening the account.
  • You must be a UK resident, unless you or your spouse/civil partner is serving overseas for the UK Crown.

Conditions:

  • You’ll be able to access your Lifetime ISA savings penalty free after you turn 60.
  • You can pay into your Lifetime ISA up until your 50th birthday, at this point you’ll continue to earn interest but you’ll not receive any additional Government bonus.

Important

You should consider if saving in a cash Lifetime ISA is the right option for saving towards your retirement. If you are employed, you should consider the potential availability of a workplace pension scheme through an employer which provides employer matched contributions, and your tax position. If you save in a Lifetime ISA instead of enrolling in, or contributing to, a pension scheme from your employer or personal pension scheme:

  • You may lose the benefit of contributions by an employer (if any) to that scheme; and
  • Your current or future entitlement to means tested benefits may be affected (these depend on the amount of income and capital you have, which includes savings).

Find out more

 

Open your account today!

You can apply online for each of our savings accounts - simply follow the links at the bottom of each product page. If you would like to find out more about our full range of savings accounts or make an application in person, book an appointment at your local branch.