Save for your first home or retirement
A Newcastle Cash Lifetime ISA (LISA) helps you save for your first home or retirement with a UK government-backed bonus of 25% – tax-free, plus interest.
A Lifetime ISA (LISA) enables 18 to 39 year-olds to save up to £4,000 tax-free each year. This is then topped up by the government’s 25% bonus, up to your 50th birthday.
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.
You only keep the bonus if you use your LISA to buy your first home or take money out from age 60 (also referred to as lifetime events). You can withdraw from your LISA at any time, but most withdrawals have a 25% charge. See more information in our FAQs below.
For those saving to buy their first home, you must be saving for over 12 months, and the house you're buying cannot exceed the £450,000 limit 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 LISA 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.
A step closer to your first home
Using your Lifetime ISA to buy your first home.
An extra boost for later life – saving for retirement
Using your Lifetime ISA to fund your retirement.
Lifetime ISA key information, FAQs and documents
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 LISA is a long-term savings product designed to help save for your first home and/or retirement. If you take out money 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. This recovers the government bonus, plus an extra charge penalising you for the withdrawal. For more information on when you can withdraw penalty-free please refer to our What Is A Lifetime ISA? Lifetime ISA Guide & FAQs.
You can transfer your LISA to another LISA provider without incurring the withdrawal penalty. We accept LISA transfers into the Newcastle Cash Lifetime ISA. These must be transferred in full and proceeds are made up of cash only.
As the LISA is a government savings scheme, it may be subject to change. This account is covered by The Financial Services Compensation Scheme.
Deposits protected up to £120,000. Your eligible deposits with Newcastle Building Society are protected up to a total of £120,000 by the Financial Services Compensation Scheme, the UK's deposit protection scheme. This limit is applied to the total of any deposits you have with Newcastle Building Society and Manchester Building Society (as a trading name of Newcastle Building Society). Any deposits you hold above the £120,000 limit are unlikely to be covered.
To find out more about the government’s Lifetime ISA scheme, visit lifetimeisa.campaign.gov.uk.
You should consider if saving in a cash LISA 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 LISA instead of using 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).
- 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 LISA from another provider).
Read our LISA FAQs to understand more surrounding Lifetime ISAs and if it is the right account for you.
View, print or download the Lifetime ISA Conveyancer Declaration form (PDF, 86KB).
View, print or download the Lifetime ISA Investor Declaration form (PDF, 468KB).
Your friendly ISA experts
We have a range of ISAs available to suit you, so you can save tax-free all year round.
