Actually, this isn’t a blog about the Mona Lisa its actually about Lifetime Investment Savings Accounts (LISA).
LISA’s are available from April 2017 and are a retirement saving option.
- Save up to £4000 per year
- You must be aged between 18 and 40
- Anything paid in will be topped up by 25% at the age of 50
- Over the age of 60 you can take out all the money tax free
- If you take it before 60 you lose the 25% bonus and get a 5% charge
Personally, I don’t think they sound great, if you want to save for retirement why not just save in a pension?
If you want to save in a bank why not just use the Personal Savings Allowance which started in April 2016.
The PSA will apply to all non-ISA cash savings and current accounts, and will allow some savers to receive a generous portion of their interest totally free of tax.
Its expected that 95% of savings will no longer be taxed.
Basic rate taxpayers will receive £1,000 in savings income tax free, higher rate taxpayers get a band of £500 and additional rate tax payers get nothing.
