New Lifetime Isas: Everything you need to know

New Lifetime Isas will launch today, but many high street banks have said they will not immediately offer one.

Here's the new accounts explained, plus the current stances of the various banks.

  • What is a Lifetime Isa?

The Lifetime Isa - otherwise known as Lisa - allows people to save up to £4,000 a year and receive a Government bonus of up to £1,000 a year on their contributions, until they turn 50.

The scheme was unveiled as a surprise measure during last year's Budget by then-Chancellor George Osborne.

Money can be withdrawn tax-free to buy a first home, or saved for retirement.

After your 60th birthday you can take out all the savings tax-free.

  • Who can get one?

Anyone between 18 and 39 can apply for a Lifetime Isa.

  • What are the restrictions?

You can withdraw the money at any time before you turn 60.

However, you will lose the government bonus, the interest on this bonus, and pay a 5% charge.

  • What could a Lisa be worth?

Over their lifetime, people saving into a Lifetime Isa could potentially receive a bonus of up to £32,000.

People saving into a Lifetime Isa could potentially receive a bonus of up to £32,000 over their lifetime. Credit: PA

  • Which banks will have Lifetime Isa products?

Nutmeg, the Share Centre, and Hargreaves Lansdown will launch investment Lisas on Thursday, while Skipton Building Society will offer a cash Lisa from June.

  • What about the leading high street banks?

The major banks said they are still considering their plans or have no plans to offer a Lifetime Isa.

Lloyds Banking Group said in a statement: "Whilst we will not have a Lisa on the launch date, we will continue to continue to review our product range plans and the role of Lisa within that."

A Barclays spokeswoman said: "We are continuing to review the recently-issued final Lifetime Isa rules and guidance, and therefore will not be launching a Lifetime Isa in April."

The high street's leading lenders have reacted cautiously to the Lifetime Isa scheme. Credit: PA

Santander said they have "no plans" to launch the Lisa, and RBS/NatWest said that they will not be offering the Isa "at this time", while HSBC said they were "continuing to work through the details" of the product.

However, the Treasury said it expects the market to grow, with more providers coming on board as products are developed.