Martin Lewis on methods to enhance financial savings with Lifetime ISA and highlights high financial savings accounts | Personal Finance | Finance

Martin Lewis is extensively recognised for sharing his monetary experience and cash saving ideas, having based the web site Money Saving Expert. Last night time, he co-presented The Martin Lewis Money Show from his residence, alongside Angellica Bell who was within the ITV studio.

As the present kicked off, the pair turned to a question which had been despatched in by an individual who’s trying to economize for a monetary milestone.

The viewer defined that she and her boyfriend are at the moment trying to open a financial savings account collectively, with the intention to save for a home deposit.

While the couple might have been trying to open a financial savings account, Mr Lewis defined that there could possibly be a means by which two separate accounts might assist them get a considerable bonus every.

He mentioned: “Well, the pure place to start out – assuming you are first time consumers aged between 18 and 40 – is a Lifetime ISA.

READ MORE: Martin Lewis points out top savings accounts including ‘absolute winner’ for easy access

“Then, the state provides 25 % on high of what you have saved as much as a max £4,000 a yr.

“So, you put £4,000 in, they put a £1,000 in.”

Addressing {couples} trying to make their first property buy collectively, he continued: “You don’t do that together – you have one each. So you could have £8,000, with £2,000 going in [from the government].”

However, savers should be conscious that there’s a time period to attend earlier than it may be used for the acquisition of a primary residence.


“You’d have to wait a year to buy,” he identified.

Mr Lewis additionally highlighted how some might not be capable of lower your expenses in a Lifetime ISA, equivalent to if they’ve already purchased a property, or have reached their 40th birthday.

For these in these circumstances, the monetary journalist identified that at the moment, there may be alternative to economize in an everyday financial savings account which has a two % rate of interest.

“Now, if you’re not first time buyers or you’re over 40, then I’d use a regular savings account,” he mentioned. “I’m assuming you have acquired cash every month to save lots of, fairly than lump sums.

“So then, it will be the Halifax common saver is the highest payer at two % and you may put as much as £250 a month in.”

Certain folks might be able to entry higher rates of interest on common financial savings account, if they have a present account which has a linked common financial savings account, as Mr Lewis went on to elucidate.

“The solely common savers that beat that, so when you’ve acquired an account with FirstDirect, HSBC, and M&S, they’ve a linked common financial savings account that pay 2.75 %,” he mentioned.

A change to Lifetime ISA withdrawals for these adversely affected by the coronavirus disaster has lately been introduced by HM Treasury.

Rather than savers being hit by a 25 % withdrawal cost for “unauthorised” withdrawals, they’ll as a substitute now solely have to pay a 20 % cost.

This diminished cost is meant to recuperate the goverment bonus, however means savers will get again all the cash they initially put in, topic to any funding losses incurred on shares and shares Lifetime ISAs.

The Economic Secretary to the Treasury, John Glen mentioned: “We know that some individuals are experiencing monetary difficulties throughout these unprecedented occasions and we need to make it as simple as doable for folks to entry their financial savings, particularly if it helps them keep away from falling into excessive value or unmanageable debt.

“That’s why we’re decreasing the withdrawal cost for Lifetime ISAs, so folks can entry their funds to assist get them again on their toes. This is a part of the wide selection of assist we’ve put in place to assist individuals who have been affected by Coronavirus with their funds.”

The Martin Lewis Money Show – A Coronavirus Special continues on Thursday on ITV at 8.02pm.

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