From 6 April 2017 you can save up to £20,000 in an ISA each tax year.
You can invest your full annual allowance in cash, stock and shares or any combination of both.
You don’t have to keep all your money with one provider, but you can only take out one cash and one stocks and shares ISA each tax year. You can choose how much you save with each.
You can generally choose when and how much you save, stop saving at any time and start up again at a later date. You can also normally get your money back at any time, or move your ISA to another provider, though there may be costs in doing so.
People under the age of 40 are able to open a Lifetime ISA and contribute up to £4,000 in each tax year. The government will then provide a 25% bonus on these contributions at the end of every tax year. This means that people who save the maximum each year will receive a £1,000 bonus each year from the government. Savers will be able to make Lifetime ISA contributions from the age of 18 up to the age of 50.
ISAs let you invest up to £20,000 in cash or stocks and shares – or a mixture of both
Lifetime ISA: Over their lifetime, savers will be able to make contributions of £128,000 matched by the government for a maximum bonus of £32,000. These tax-free funds can be used to buy a first home worth up to £450,000 at any time from 12 months after opening the account. They can also be withdrawn from the Lifetime ISA once the saver is aged 60 or over. Opening a Lifetime ISA will be very similar to saving into any other ISA. Eligible investments will be the same as for a cash or stocks and shares ISA. If you withdraw your Lifetime ISA before age 60 and you are not using the money to buy a first home, you will be charged a 25% withdrawal charge unless you’re terminally ill, with less than 12 months to live.