Following the launch of its market leading Cash Lifetime ISA (LISA) in October, the region’s largest building society is now accepting transfers in to its cash LISA.
From today Newcastle Building Society will accept the transfer of Lifetime ISAs from both stocks and shares and cash LISA products. As with all stocks and shares to cash ISA transfers, the stocks and shares element will need to be converted to a cash LISA by the current provider ahead of the transfer.
Customers can simply log onto the Society’s website and will have the option to transfer from their current LISA provider. Customers will need to transfer their LISA in its entirety rather than in portions, and normal ISA rulings apply.
Newcastle Building Society entered the cash LISA market at a market leading variable rate of 1.1% Gross/AER. It is only the second provider to offer the product nationally via its online portal.
Stuart Miller, customer director at Newcastle Building Society, said: “Following the successful launch of our Lifetime ISA back in October last year, we’re pleased to be able to provide more choice for savers by being able to accept LISA transfers from other Lifetime ISAs, whether it’s a cash, or a stocks and shares LISA.”
The tax free lifetime ISA can help first time buyers saving for a deposit, and those saving for retirement, attracting a 25% Government bonus on amounts saved each tax year to a limit of £4,000 per year (£1,000 bonus). Savers will only receive the Government’s 25% bonus if they go on to use the savings in their Lifetime ISA towards the deposit on their first home and/or towards their retirement. If customers make a withdrawal not connected to these two events then a 25% penalty will apply to the amount withdrawn. This will recover the Government’s bonus and customers will get back less than they have saved.
Stuart Miller continued: “With Help to Buy ISAs being removed this year, Lifetime ISA gives people another avenue to save their money, whether it’s a deposit for their home or saving for later life. The 25% government bonus will really aid savers, significantly adding to their personal savings, with as much as £32,000 available to those who save the maximum amounts permitted.”