New Account type: Lifetime ISA

Would it be possible to introduce a Lifetime ISA account? As only the big brokers and robo investment platforms currently offer the service.

I would happily move mine across to T212.

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I’d also be interested in having my ISA and lifetime ISA with 212 :+1:

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Hey Jarul,

What’s the difference between the “Lifetime ISA” you speak of and the current ISA account Trading 212 provides?

thanks!

Hey, in a nutshell, lifetime isa is for under 40s (who can continue using it, if they opened it before their 40th birthday), for either to buy a house or for retirement. The max you can put in is £4k a year with a government bonus of £1k (25% top up) . It eats into your overall isa limit of £20k. Also you can’t withdraw before 60 (there are exceptions), otherwise there is a penalty which means you’ll lose the bonus amount and some of the money you put in (for every £100 you’ll get back £93.75).

Theres pros and cons to whether its better than a workplace pension and your current tax rate. I use it alongside my work place pension.

There is no one currently providing it for free, therefore it would excellent if Trading 212 could be one of the first. There’s also request for this to be introduced on Freetrade.

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@Jarul Its definitely something that we’re looking to do but I can’t commit to a deadline yet. The process isn’t very simple on our end.

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@David that’s encouraging to know none the less.

In the mean time I might continue to continue to contribute with my existing Lifetime ISA broker and transfer it across when you guys are ready.

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Lifetime ISA, Junior ISA and SIPP accounts are all on the table but we have to make sure we don’t spread ourselves too thin. There are many innovative features that want to implement in our core investing/ISA accounts before that.

We don’t want to be yet another fintech rushing to bundle half-baked services with millennial angle - there are enough of these.

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@Ivan that’s a fair point, I’m sure we’d all prefer things get done properly. And I’d imagine there will be a lot of admin on your end whenever you do launch those accounts.

I have an account with 212 already but registered on the forum purely to add support to this!

I’m happy to pay a fee for the Lifetime ISA, I understand there are admin costs for the provider.

I’m excited to see who offers one first - 212 or Freetrade!

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Will be great to get a brand new LISA account with Trading 212 next fiscal year starting 6th Apr 2020… @David @Ivan Please add support/plan for LISA sooner in your roadmap, as there is no low-cost provider in the UK doing a LISA at the moment. LISA is provided only by major players like HL, AJ Bell where the trading costs are too much and don’t want to stick with them for longer. Many Thanks

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I’ve been looking to open a LISA as it gives really good returns, and at the time I thought that you could only do this through cash. However, it seems you can also open a stocks and shares LISA. I’m not sure if this is possible for the platform to implement in the futures but it would definitely offer a much greater return with the 25% bonus.
Then again, this is limited to £4000 and I’m not sure if you can have a stock and shares ISA too. Any ideas on this? If not I’m just going to open a cash LISA on MoneyBox, as my bank doesn’t offer LISAs.
Thanks

Read up on it and you can have both a stocks and shares LISA and a stocks and shares ISA in the same tax year. 25% instant profit on the money put in is ridiculous. Only can be taken out when buying a first home or at 60 though, struggling to figure out the best way to go about this

Open one. Mine is with Hargreaves Lansdown and I just put the money into Vanguard global all cap.

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Thanks for pointing this out to me, their fees a much lower than moneybox and give more freedom. Will be signing up soon!

Want to also say I’ve just created this account purely to promote the idea of getting a Lifetime ISA on Trading 212

Potentially could operate where you trade in your LISA but when you’re about to go over your £4000 annual contribution limit all the remaining dividends are transferred to a different Stocks & Shares ISA? Or held to immediately be re-invested into the LISA the subsequent financial year?

I don’t believe there is any issue with dividends? You can only put £4000 in, but the dividends are ok to reinvest as long as you don’t withdraw them from the account (which obviously you wouldn’t want to do in a LISA).

Ahhhh - of course, I had realised that before but it’d skipped my mind when posting. Thanks!

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Though - if trading 212 were to begin allowing its users to trade in a LISA account, would there be a commission on transfering regular ISA stocks into a LISA even though it’s on the same platform?