Paragon enters Lifetime ISA market as HTB ISA deadline nears
Paragon Bank has launched a Cash Lifetime ISA.
The Lifetime ISA can be opened between the ages of 18 and 39, allowing customers to save up to £4,000 a year tax-free and receive a 25% government bonus until they turn 50.
Funds can be used either for the purchase of a first home or for retirement.
If used for retirement, the funds can be withdrawn free of charge once the account holder reaches the age of 60, however the savings will stop earning the 25% government bonus and cannot be added to once the account holder turns 50.
The Lifetime ISA market is expected to grow after the deadline to open a Help to Buy ISA passes on November 30th.
Derek Sprawling, savings director at Paragon, said: “The Lifetime ISA is a fantastic opportunity for savers to earn a considerable amount of money on their savings towards their first home or retirement.
“The imminent end of the Help to Buy ISA should increase the appeal of the Lifetime ISA scheme.”
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