Nottingham Building Society is the second business to offer a cash Lifetime Isa, despite uncertainty around the government’s commitment to the product.
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.
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.