To open a lifetime Isa you need to be aged 18-40.
You can choose between an investment Lifetime Isa and a cash one. There are currently seven providers offering a the former, and until Nottingham BS launches later this summer, Skipton BS is the only one available for cash savings.
The investment options are offered by OneFamily, The Share Centre, Nutmeg, Hargreaves Lansdown, Moneybox, AJ Bell, Foresters Friendly Society.
On top of interest or profits you get a cash bonus worth up to £1,000 a year added to every £4,000 saved into a Lifetime Isa each year.
You must use the cash to either buy your first home or wait until the age of 60 to withdraw it for use in retirement.
Otherwise you face a hefty penalty of 25 per cent on any withdrawals unless you need the money as you are terminally ill. That’s 25 per cent of your whole balance including deposits, interest or profit.
The 25 per cent bonus is paid up until you reach the age of 50. If you max this out, it’s worth up to a £32,000 boost from the Government.
If you want to use the cash to buy a house it can be worth up to £450,000.
The lifetime Isa effectively took over from the Help to Buy Isa which will be closed in November 2019.
If you already have one of these you can transfer over the savings if you wish. To find out more read out guide to Help to Buy Isa vs Lifetime Isa.