{"id":44062,"date":"2023-11-19T21:19:23","date_gmt":"2023-11-19T21:19:23","guid":{"rendered":"https:\/\/lethal-industry.com\/?p=44062"},"modified":"2023-11-19T21:19:23","modified_gmt":"2023-11-19T21:19:23","slug":"invaluable-savings-option-could-get-you-1000-a-year-bonus","status":"publish","type":"post","link":"https:\/\/lethal-industry.com\/world-news\/invaluable-savings-option-could-get-you-1000-a-year-bonus\/","title":{"rendered":"\u2018Invaluable\u2019 savings option could get you \u00a31,000 a year bonus"},"content":{"rendered":"

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Britons saving up for their first home or for their retirement have been urged to consider opening a Lifetime ISA (LISA) – which could provide a yearly bonus of \u00a31,000.<\/p>\n

A saver can deposit up to \u00a34,000 each tax year into a LISA, with any deposits getting a 25 percent bonus, up to \u00a31,000.<\/p>\n

Brian Byrnes is head of personal finance at Moneybox, which currently provides the top-paying LISA, at 4.25 percent.<\/p>\n

He told Express.co.uk: \u201cIt’s proven to be an invaluable savings option for young people across the length and breadth of the country and has already enabled a whole generation (around 130,000 people) to buy their first home, far sooner than would have otherwise been possible.<\/p>\n

\u201cIn addition, beyond any other product launched in recent years, the Lifetime ISA has helped drive real behavioural change among young people, helping them build and embed positive long-term saving habits earlier in life.\u201d<\/p>\n

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The funds have to be used towards purchasing a first home or they can be accessed once a saver turns 60 – otherwise there is a penalty to pay for any withdrawals.<\/p>\n

There have been reports Chancellor Jeremy Hunt is considering announcing changes to ISA policy in the autumn statement next week.<\/p>\n

Under the current rules, the funds can only go towards buying a home worth \u00a3450,000 or less.<\/p>\n

Mr Byrnes said: \u201cLooking to the future, without a doubt, LISA rules should be regularly reviewed to ensure the product remains fit for purpose.<\/p>\n

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\u201cThinking about the next generation of aspiring homebuyers who are just starting on what is a five- to eight-year deposit-saving journey, we strongly believe the price cap should be index-linked to house prices and subject to an annual review.<\/p>\n

\u201cThis will provide some much-needed reassurance and peace of mind to LISA savers who live and work in some of the most expensive parts of the UK and ensure the product remains fit for purpose for all those who need it most, into the future.<\/p>\n

\u201cMoneybox has also been campaigning the Chancelllor to introduce a penalty-free annual \u2018Emergency Withdrawal Allowance\u2019 so that LISA savers are not penalised if they need their money in an emergency.\u201d<\/p>\n

Data from the group showed that when its LISA savers had to make an unauthorised partial withdrawal, it was on average for \u00a3400, costing them \u00a320 of their original savings.<\/p>\n