Lifetime ISA Catches
What are some of the Lifetime ISA catches? For those of you who are in the UK, you will be well aware of the term ISA. If you’re not sure what it is, here’s a definition. It’s a savings account set up by the government into which they’ll contribute 25%. So, let’s say you save up £20,000, they’ll put £5,000 in the pot for you when you’re ready to purchase a property. It sounds great doesn’t it, almost like free money? Well, it’s worth considering some of the catches.
Think about why the government would spend so much time, money and effort promoting this scheme. What’s in it for them? Samuel believes there is a bigger agenda which is to control everything. The wealthiest people in the country want to have all of the money which means they’re in favour of financial illiteracy. The government also wants to control people, which is easier to do when the population is poor or working/ middle class. The curriculum is heavily influenced by the government which explains why the education system doesn’t teach kids about money.
The ISA does have positive stories and there will be people reading this shaking their head. If you want to buy a home, this might be helpful. However, here are some catches to consider:
- If you change your mind and want your money back, you will be penalised with a 25% fine. Alternatively, you can wait until you’re 60 years old to get the money back without a fine.
- You can’t save more than £4,000 per year.
- The money has to be used for a house to live in, not for investment.
- If a new government comes into power and decides to change the rules of the ISA, you have to accept them.
Are you thinking about getting a lifetime ISA? Let us know what you think about it.