 is a savings account that lets you save up to £4,000 every tax year. Anyone between 18 and 39 can open a Lifetime ISA and deposit a maximum of £4,000 per tax year into one. You can keep adding money into one up until you are 50 and must make your first payment into one before the age of 40. But you can also get a 25% bonus on top of any personal contributions. So if you added £4,000 into one this tax year, you would get £1,000 free from the government. What types of lifetime ISAs are there? There are two different types of Lifetime ISA - a Cash Lifetime ISA and a Stocks and Shares Lifetime ISA. A Cash Lifetime ISA can be worthwhile if you are saving for your first home and are planning to buy within a couple of years. A Stocks and Shares Lifetime ISA might be more worthwhile if you are saving for retirement. With any Lifetime ISA, you will have to pay a fee if you want to use the money for anything other than your first home or retirement. As an example, if you had savings worth £800, you would earn a 25% bonus of £200 on top - bringing your total pot to £1,000. What are the other types of ISAs? Customers also have the option of investing in stocks and share ISAs or taking out a Lifetime ISA if a cash ISA isn't as attractive. Cash ISA A cash ISA can be opened by anyone 16 or over and you can deposit a maximum of £20,000 into one per tax year. There are different types of cash ISAs, including easy-access cash ISAs and fixed-rate ISAs. Easy-access ISAs let you add money in which can be taken out at any time without a charge. Customers can get returns of up to 3.62 with Cynergy Bank's easy-access cash is){kind=link}
SAVERS looking for a big cash boost could get a free £1,000 a year through this little-known bank account.
Money is tight for everyone and households are looking at other ways to get make cash work harder.
A lifetime ISAs (LISAs) is a savings account that lets you put away up to £4,000 every tax year.
Anyone between 18 and 39 can open a Lifetime ISA and deposit a maximum of £4,000 per tax year into one.
You can keep adding money into one up until you are 50 but must make your first payment into one before the age of 40.