A Lifetime ISA is a flexible way to save and invest for your first home or later life. You can open one if you’re between 18 and 39 years old.

You can choose to save cash or invest in the stock market. As with other ISAs, your money can grow free from UK tax. However, the real benefit is an extra 25% from the government of up to £1,000 a year.

You can contribute up to £4,000 each tax year into the Lifetime ISA and the government will add a further 25%. For every £4 you save, you get £1 extra (up to £1,000 per tax year).

You need to be between 18 and 39 to open a Lifetime ISA. However, you can still pay in and get the government bonus, until you turn 50.

Try our Lifetime ISA calculator to see the government bonus you could receive over time.

Tax rules can change and their benefits depend on your circumstances.
Lifetime ISA allowance forms part of the overall £20,000 annual allowance.

After 12 months from the first payment, you can use the money to make an eligible house purchase for a property worth up to £450,000. Or you can wait until you're 60 and take your money out then.

If you want to take money out before you're 60 and you aren't buying your first home, there's usually a 25% government charge. That means you could get back less than you originally put in.