ISA Penalties on the rise!

With COVID-19 having affected so many of our finances, it is no surprise that record numbers of savers have been reaching in to their savings funds early in a desperate bid to keep afloat.

Lifetime ISA's (LISAs) are a very economic way to save for your retirement. They are aimed at savers aged 18-50.

Savers can invest up to £4000 per year in to a Lisa, with the government topping this up by a whopping 25%.

However, there are only limited circumstances where a person may withdraw from their Lisa fund, and if they do not meet these criteria, they will be imposed with a penalty of 25%.

(Due to Covid this has temporarily been reduced to 20% up until April 2021)

You may only withdraw penalty free for:

Buying their first home
If they are aged 60+
If they are terminally ill and expected to pass away within 12 months

Lifetime ISAs (Express article)

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