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Career

Why You Should Consider Getting the Lifetime ISA

This article is written by a student writer from the Her Campus at Lancaster chapter.

Don’t want it to take a lifetime to save for your first house after uni?

When you’re at uni, you’ve got a taste of that sense of freedom – why shouldn’t you get to carry on living the life you’ve become so accustomed to? Getting a first house is tricky and can take time. But being on top of saving and thinking about the future can really help to speed things up!

You may have heard the buzz about something called a Help to Buy ISA. Unfortunately, they are no longer taking new applicants…but don’t fear – the Lifetime ISA is here. Martin Lewis, my go-to on all thing’s finances, provides an easy guide to help with all things Lifetime ISA.

Access the guide here.

So, what’s it all about?

In short, you are able to save up to £4000 a year and in return will get 25% cash back annually. So, should you manage to save £4000 you would get an extra £1000 totally free. This bonus is paid monthly and can be used towards a deposit on your first home (similar to the Help to Buy ISA) or saved until you retire.

 

What’s the catch?

There isn’t much of a catch here! The only important thing to consider is that if you withdraw the money not for the purposes stated above (for your first home or retirement), there will be a 25% penalty.

 

So, my advice to you is do your own research and get sorted early! If you can, start saving now, even if it’s only in small amounts. It’ll add up and make a difference in the long run!

 

All information from: https://www.moneysavingexpert.com/savings/lifetime-isas/

Amelia Abbott

Lancaster '21

Second-year Finance student giving writing a go ?
Emily Watson

Lancaster '20

Linguistics and English Language 👩🏼‍🎓