"The Help to Buy ISA, which remains on the market for the short term, has a major flaw in that the bonus isn’t paid until the ISA is closed. "
Lifetime ISA bonus payments have already matched total Help to Buy ISA bonus payments at £130 million, despite the Help to Buy ISA launching two and a half years ago and the Lifetime ISA just 16 months ago.
Nici Audhlam-Gardiner, managing director of Lifetime ISAs at OneFamily, commented: “The Lifetime ISA has recently been subject to unhelpful speculation but these figures demonstrate the excellent benefits savers can access, which are unique to this product. We know from our customers that they are delighted with the growth they are seeing on their investments, as they can see the benefits in real time.
“The Help to Buy ISA, which remains on the market for the short term, has a major flaw in that the bonus isn’t paid until the ISA is closed. This means that not only do savers not benefit from regular top ups, but they can’t use the money for a deposit as it’s available only on completion of the sale of a property. Furthermore, the maximum bonus available is just a tenth of what savers can get on a Lifetime ISA. Unfortunately, many savers aren’t aware of this so end up with a product that isn’t ideal for their needs.
“We know it’s harder than ever for young people to save and the Lifetime ISA is a helping hand for the under 40s. We urge the Government to add further weight to promoting the Lifetime ISA and consider how it can be further enhanced. It is a huge help to the younger generation in achieving two of life’s biggest financial challenges of buying a first home and saving for a comfortable retirement.”
