Lifetime ISAs (also known as LISAs) are a type of ISA created to help people save either for their first home or for retirement. If you take out a Lifetime ISA, the government will give you a bonus worth 25% of what you pay in, up to a set limit, every tax year.

What is the difference between an ISA and a lifetime ISA?

Both are designed to help you buy your first home and give you a 25% bonus on your savings subject to certain limits. The main difference is that you can save £4,000 a year in a Lifetime ISA, compared with £2,400 in a Help to Buy ISA. This could mean a much bigger and quicker bonus when compared to a Help to Buy ISA.

How long can you have a lifetime ISA?

You can save up to £4,000 a year, and can continue to pay into it until you reach 50. The account can stay open after then, but you can't make any more payments into it. Your savings will be kept on a tax-free basis for as long as you keep the money in your Lifetime ISA .