Martin Lewis and Angellica Bell co-hosted the last episode of the current Martin Lewis Money Show Live series last night – before it returns in September. During the broadcast, the financial reporter shared a number of information about the money and answered questions from members of the public.
He replied, “Why not? You can change your LISA provider and get a higher rate – the main payer is the Nottinghamshire Building Society at 1.25%, followed by MoneyBox at 1%.
“Go to them, open one and ask them to transfer your existing LISA. ”
DO NOT MISS
On lifetime ISAs, Martin then suggested to some people that they open a lifetime ISA during this fiscal year, whether or not they are sure to use it to buy a first home.
This is because there has been a change in the rules, which means that they can open an account now but have until the end of the current fiscal year to make their decision without incurring a penalty when withdrawal of savings for “unauthorized” reasons.
He said: “A lifetime ISA is a product that 18-40 year olds can open, and then they get a 25% increase up to £ 1,000 a year – when they use the money for the first time house worth up to £ 450,000. ”
The lifetime ISA can also be withdrawn by the saver once they reach the age of 60 – which means that some can use this type of account for retirement savings.
“You must have held it for a year before you can use it,” he added.
“Now the main problem with lifetime ISAs is that if you don’t use it for an eligible home or if you don’t remove it once you’re 60 or older, you have to pay a penalty of six and a quarter percent to have money for something else.
“But it has disappeared for the time being, until April 5 of next year, because of the coronavirus.
“So the people who need their money there can withdraw it.
“So right now you can open an ISA for life as a” no-brainer “and you decide on April 5 of next year if you want to withdraw your money and that’s okay.
“So if you are between 18 and 40 and have never bought a house, open a LISA. The Nottinghamshire Building Society is your best buy. ”
The Martin Lewis Money Show Live is available to watch now on the ITV hub.