You can contribute up to £4,000 a year up until you reach the age of 50.
The government will give you a 25% bonus on contributions – that’s a potential £1,000 ‘free money’ every year.
Use your savings to buy your first home up to a value of £450,000, for anything you’d like once you’re 60, or if you're terminally ill.
If you need to access your money for any other reason, you’ll pay a hefty penalty.
Your Lifetime ISA contributions count as part of your 2018/19 annual ISA allowance of £20,000.
You can contribute to both a stocks and shares Lifetime ISA and a ‘regular’ stocks and shares ISA in the same tax year.
As a rule of thumb, if you're employed, employer pension contributions plus any tax relief is likely to outweigh Lifetime ISA 25% government bonus.
If you’ve maxed out contributions on your workplace pension and you want to save more, the Lifetime ISA could be a good option.
You can contribute to a Lifetime ISA for someone else provided they’re eligible.
Some of the rules around the Lifetime ISA are complicated. If you’re unsure if a Lifetime ISA is the right choice for you, please seek financial advice.