What are the two types of lifetime ISAs?
Cash lifetime ISAs
This type of lifetime ISA pays out interest in the same way as a cash ISA.
You still get the 25% savings top up, and are restricted to making withdrawals to buy your first home or after you turn 60 if you want to keep it.
These ISAs are best for people who are saving up for something they plan to buy (almost certainly a first home) in the next few years or who want to know exactly what they have to spend.
Stocks and shares lifetime ISAs
These work the same way as a standard stocks and shares ISA, where your money is put in the markets rather than a cash savings account.
You get the same bonus and withdrawal restrictions as you do with a cash lifetime ISA, but the risks and potential rewards are higher with this type of account.
Stocks and shares lifetime ISAs are best for people looking to grow their money over the medium or long term, so are more suited to people looking to withdraw their money after they are 60 or if they're not planning to buy a home for several years.
What are the two types of lifetime ISAs?
Cash lifetime ISAs
This type of lifetime ISA pays out interest in the same way as a cash ISA.
You still get the 25% savings top up, and are restricted to making withdrawals to buy your first home or after you turn 60 if you want to keep it.
These ISAs are best for people who are saving up for something they plan to buy (almost certainly a first home) in the next few years or who want to know exactly what they have to spend.
Stocks and shares lifetime ISAs
These work the same way as a standard stocks and shares ISA, where your money is put in the markets rather than a cash savings account.
You get the same bonus and withdrawal restrictions as you do with a cash lifetime ISA, but the risks and potential rewards are higher with this type of account.
Stocks and shares lifetime ISAs are best for people looking to grow their money over the medium or long term, so are more suited to people looking to withdraw their money after they are 60 or if they're not planning to buy a home for several years.
