If you are aged 18 to 39, and you’re looking to save for your first home or for later life, you could consider lifetime ISA.
You could hold cash in a Lifetime ISA or choose to invest it just as you would with a stocks and shares ISA. You can put in up to £4,000 each year, up to and including the day before your 50th birthday. But remember that this £4,000 allowance contributes towards your full ISA Allowance. The Government will pay 25% bonus on your contributions. That is, £1 for every £4 that you put in, up to maximum of £1000 a year.
But you must be aware that a charge of 25% will be applied to any withdrawal, if it is for any reason, other than buying your first home, or at age 60, or if you are terminally ill.
The amount you pay in is linked to your annual ISA allowance, which is £20,000 for the current tax year. And for example, if you pay £1,000 into your Lifetime ISA, you can still pay £19,000 into other ISA products.