Martin Lewis has urged people to open a Lifetime ISA that could earn them a bonus of £1,000 per year.
During the last episode of The Martin Lewis Money Show Live, the financial guru explained how anyone aged between 18-39 can open a LISA, with as little as a £1 deposit.
He also shared how the savings accounts are a great way for people to get on the property ladder or bulk up their pension.
Martin told viewers: “You can out £4,000 per tax year in a Lifetime ISA, you can only open this if you’re aged 18-39, once it’s in, if you’re using it to buy your first home, you get a 25% boost on top of it, equally, if you leave it until you leave it until aged 60 for retirement, as long as it’s a qualifying house that costs under £450,000.”
The founder of MoneySavingExpert.com continued: “So if you open one today, if you had the money, you could put £4,000 in and then in three weeks time on the 6th of April, you could put another £4,000 in. You’ve then got £8,000 in and that’s £2,000 free added on top towards your first house.”
Martin also had a couple of quick pieces of advice for those that already have a Lifetime ISA.
“If you’ve got one of these and you won’t use it for buying a house or retirement and you want to take the money out, do it now,“ he warned.
He went on to explain how due to Covid-19, the usual 6.25% penalty fee has been waived on withdrawing cash for any other reason - but only until April 5.
More information about Lifetime ISA’s can be found on the MoneySavingExpert.com website here.
The Martin Lewis Money Show Live returns to ITV in May for a holiday special.
