The other Isas: Should you invest in a Lifetime, IF or Aim Isa?
Most of us are familiar with three types of Isa: cash, stocks and shares and junior Isas.
But did you know there are three other types, each with different rules and risks?
It isn’t easy to work out whether these alternative Isas are right for you. So here’s a handy guide to help.
Launched almost six years ago, a Lifetime Isa can be opened by those aged 18 or over, but under 40.
You can deposit up to £4,000 each tax year and earn a 25 per cent government bonus up to a maximum of £1,000 a year.
The £4,000 counts towards your annual £20,000 Isa allowance. You can save into one cash and one stocks and shares Isa alongside the account if you desire.
However, there are strict rules on how you can spend the money you save.
Take the money out before age 60 for anything other than a house and you’ll be whacked with a 25 per cent charge. This wipes out the Government bonus and eats into what you’ve saved.
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