However, to take advantage of this benefit, savers will have to transfer the money they have to a Lifetime ISA to be able to receive this £ 1,000 before this deadline. Since the program began five years ago, more than 750,000 ISA Lifetime have been opened by savers across the country, according to government figures. In total, an estimated 3 3 billion has been paid into Lifetime ISA during this period, including almost 600 600 million from government bonus money. In the light of the cost of living crisis, many people will look for ways to boost their finances to pay their growing bills. READ MORE: The state pension will reach 3 10,340 as a triple lock was saved – some get less Laura Suter, chief financial officer at AJ Bell, explained: “The new tax year next week marks five years since the launch of Lifetime ISA, following George Osbourne’s surprise announcement just a year earlier that he was creating a Help to Buy hybrid. ISA and pension. “A shaky start with few providers and the slow absorption has since been forgotten as sought-after buyers flock to the accounts for the first time, as well as those saving for retirement. “More than 775,000 ISA Lifetime have been opened since they were released in April 2017, based on government data obtained through an FOI. “Last year 232,000 people opened a Lifetime ISA to start saving for their first home or retirement. DON’T MISS: “In addition, about 3 3 billion £ has been paid into Lifetime ISA, with almost εκατο 600 million £ of this being money from the government bonus.” A person who opened an account in the first month of the Lifetime ISA release, which saved a maximum of 4. 4,000 per year, would receive £ 5,000 in cash bonus from the government. In addition, this account holder would have 29 29,000 in Lifetime ISA if the investment increase remained at 5% each year. While Ms. Suter recognizes the benefits of a savings account, she is wary that many people will not see such a generous return on their investment. He added: “Most investors will not see their investments skyrocket to this level, but choosing between cash and Lifetime ISA investment is an important first step. “With inflation expected to reach 7% next month, anyone with long-term cash savings needs to assess whether they are in the right place. “The general rule of thumb is that if you plan to use the money for the next five years, you are safer to keep cash, but the fact that there is no cash ISA approaching inflation means that savers are losing money in real terms every year.” . Through ISA Lifetime, savers can contribute up to 4. 4,000 each tax year, which is part of the total ISA των 20,000 annual compensation. For example, if someone puts 4. 4,000 into their account, they will still be able to deposit 16 over .000 16,000 into other ISAs. Any development obtained through a Lifetime ISA is tax-free, however these rules are subject to change and depend on the account holder’s circumstances. To qualify for this account, savers must be between 18 and 39 years old to open a Lifetime ISA. However, they can still pay into the account until they reach 50.
