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Second cash Lifetime Isa to launch despite product’s uncertain future

Real estate offer. Businessman holds an artificial model of the houseNottingham Building Society is the second business to offer a cash Lifetime Isa, despite uncertainty around the government’s commitment to the product.

A Treasury select committee report in July proposed getting rid of the Lifetime Isa altogether.

The committee said its inquiry received “strong criticism” of the Lifetime Isa over its complexity, its “perverse incentives” and its lack of popularity with the industry and pension savers.

Phase one of the roll-out of the Nottingham Building Society product will see it make the Lifetime Isa available in its branches.

Nottingham Building Society chief operating officer Simon Taylor says the Lifetime Isa remains a “genuinely beneficial savings product”.

It allows savers between the ages of 18 and 39 to save up to £4,000 a year tax-free and receive a government bonus of 25 per cent. The savings can then be used for either a house deposit or for retirement.

The Lifetime Isa hit the market in April 2017 amid criticism it would mainly benefit the children of the wealthy.

Lifetime Isa one year on: Will a colourful product fade away?

Nottingham’s cash Lifetime Isa will allow customers to open an account face-to-face with a minimum £10 deposit. It plans to pay 1 per cent annual equivalent rate interest onto account holders’ yearly savings.

The Skipton Building Society cash Lifetime Isa, the first to be brought to market in June last year, has a £1 minimum starting deposit.

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There is one comment at the moment, we would love to hear your opinion too.

  1. A Cash ISA mmmmmm lovely. As I have said many times before, if £4,000 pa can be afforded, then Pension saving for a HRT payer is much more generous

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