Newcastle Building Society now accepts Lifetime Isa transfers, following the launch of its cash product last year.
In October 2018 Newcastle launched its cash Lifetime Isa at a rate of 1.1 per cent, the third of its kind in the market at the time.
Today (February 4) the building society announced it will now accept the transfer of the Lifetime Isa from both stocks and shares and cash Lisa products.
Customers can find the option to transfer from their current Lifetime Isa provider to Newcastle on the building society’s website, but the Lifetime Isa will need to be transferred out in its entirety rather than portions.
A Newcastle spokesperson advised the stocks and shares element of any Lifetime Isa to be transferred will need to be converted to a cash Lifetime Isa by its current provider ahead of the transfer.
Other lenders to offer the cash Lifetime Isa include Skipton Building Society and Nottingham Building Society, with the product offered more widely in a stocks and shares form, with Hargreaves Lansdown, OneFamily and Nutmeg offering the product among others.
Lifetime Isas allow individuals aged between 18 and 40 to save up to £4,000 per year and receive a government bonus of 25 per cent towards a new home or pension.
But the Newcastle spokesperson warned if consumers make a withdrawal not connected to these two events a 25 per cent penalty will apply to the amount withdrawn and this will recover the government's bonus, with customers getting back less than they saved.
Stuart Miller, customer director at Newcastle Building Society, said: "With Help-to-Buy Isas being removed this year, Lifetime Isa gives people another avenue to save their money, whether it’s a deposit for their home or saving for later life.
"The 25 per cent government bonus will really aid savers, significantly adding to their personal savings, with as much as £32,000 available to those who save the maximum amounts permitted."
rachel.addison@ft.com
