Allowances and rules explained
A Lifetime ISA (LISA) is a dual-purpose ISA, designed to help those saving for a first home and retirement.
We don’t offer a Lifetime ISA at the moment, but here’s some information about how they work.
You’re able to pay into one Lifetime ISA in each tax year, as well as a cash ISA, stocks and shares ISA, and an innovative finance ISA, within the overall ISA limit of £20,000 in the 2024/2025 tax year.
More information is available in our guide to ISA allowances.
You’re able to open a Lifetime ISA if you’re aged between 18 and 39. You can save up to £4,000 each tax year, every year until your 50th birthday.
The government will pay an annual bonus of 25% (capped at £1,000 p.a.) on any contributions you make.
Funds can be withdrawn tax-free at any time in order to buy a first home worth up to £450,000, and from age 60 for any purpose.
You can open more than one Lifetime ISA, but will only be able to pay into one in each tax year.
The government will provide a bonus of 25% on contributions made during the tax year.
This bonus is paid back to the Lifetime ISA on a monthly basis.
To buy a first home
The savings and the bonus can be used towards a deposit on a first home worth up to £450,000.
Accounts are limited to one per person rather than one per home – so 2 first-time buyers can both receive a bonus when buying together.
At retirement
The savings and bonus can be accessed tax-free, without penalty, once you’ve turned 60 years old.
Other withdrawals
You can make withdrawals that aren’t for a first house purchase or retirement, but a 25% charge applies to the amount being withdrawn. This returns the bonus element of the fund to the government, with an additional charge. You will still have access to your savings and any interest earned on them, minus the charge. Please bear in mind that if you make a withdrawal before you receive your first bonus, the charge will still be made so you won’t be able to take out as much as you deposited.
In certain circumstances – eg, a terminal illness or upon death – there’ll be no charge to close the account.
Yes, tax-free interest will be earned on all balances.
You can carry on saving towards retirement, or withdraw the funds subject to the 25% withdrawal charge mentioned above.
The original LISA can be re-opened, and the amount you’d saved replaced.
New tax year, new cash ISA
It’s a new tax year, so it’s a great time to open a cash ISA (Individual Savings Account).
You can pay up to £20,000 into a cash ISA this tax year. You don’t have to pay in the full £20,000 over the tax year, or pay it in one go – just what you can, when you can. Plus, the moment you open a cash ISA with us, you won’t pay tax on any interest it earns.
Terms, conditions and ISA rules apply.
Manage your savings
The Help to Buy: ISA has closed to new savers, but you can add money to one you’ve already opened until 30 November 2029.
If you already have a Help to Buy: ISA, you can now set up a savings goal in the Barclays app1 and track your progress.
Manage your savings
The Help to Buy: ISA has closed to new savers, but you can add money to one you’ve already opened until 30 November 2029.
If you already have a Help to Buy: ISA, you can now set up a savings goal in the Barclays app1 and track your progress.
Start the journey to your first home
Find out how to buy a home and take out a mortgage, get tips on what to do if you can’t save the deposit you need and work out much you could borrow.
Barclays Bank UK PLC and Barclays Bank PLC are each authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Barclays Insurance Services Company Limited and Barclays Investment Solutions Limited are each authorised and regulated by the Financial Conduct Authority.
Registered office for all: 1 Churchill Place, London E14 5HP
