More than 100,000 sign up for Lifetime Isas

23 February 2018

More than 100,000 people have opened a Lifetime Isa (Lisa), with Skipton Building Society alone enticing almost 65,000 customers to open a cash version of the Lisa.

Data from the building society shows that 64,787 Lisas have been opened since it launched its product in June 2017.

Official Isa statistics are not published until August, but Moneywise has asked the providers of the stocks and shares version of the Lifetime Isa how many customers they have signed up.

DIY investment platform Hargreaves Lansdown says it has just under 30,000 customers at present while robo-adviser Nutmeg has more than 8,000 accounts.

This means that more than 100,000 Lisas have been opened overall since the product was launched in April 2017.

Other stocks and shares Lisa providers AJ Bell, Foresters Friendly Society, Moneybox and The Share Centre declined to share the number of active accounts. OneFamily, which launched its product earlier this month, said figures were not yet available.

More than £123 million has been saved so far with Skipton, which remains the only provider to offer the cash version of the product. Skipton’s average balance is £1,609, but this figure is skewed by the amount of accounts which have been opened with just £1.

Many people have chosen to do this as you must wait a year before you can use the Lifetime Isa to buy a home. By depositing a token amount, such as £1, this countdown period starts immediately.  

Skipton says the average age of its Lifetime Isas customers is 26, with 72% using the product to save for a home. Just 13% are using it to save for retirement while 15% are using it for both.

What is a Lisa?

The Lisa is designed to help first-time buyers and people starting to save for retirement. When you pay into a Lisa, the government will top up your deposits with an annual 25% bonus up to a yearly maximum of £1,000.

However, you can only open one if you are between 18 and 39 years old. 

As with other Isas, you can choose a Cash Lisa or an investment Lisa and once your money is in a Lisa it can grow tax-free.

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