The Share Centre to launch Lifetime ISA

Its product will allow new customers to choose between any one of its three Ready Made funds - Cautious, Positive or Adventurous.

It then plans to add to those funds later in the year by widening to self-select on the open market, meaning customers can top up their Lifetime ISA by investing in individual equities or any funds, including active or passive funds, investment trusts or Exchange Traded Funds.

Darren Cornish, Director of Customer Experience at The Share Centre, said: “We believe this is a great product for an age group (18-40) that will benefit from the 25% annual government bonus as they save for a house deposit or their retirement.

“Although only an account holder can pay directly into a Lifetime ISA, and the product is not available to those over 40, we see many of our present customers being keen to help their children or grandchildren to fund a Lifetime ISA – for example by giving them money to put in their account.

“There may be lots to get right with Lifetime ISA, but we see the advantages of this product for younger investors and their parents/grandparents who wish to support them – it would be wrong of us not to offer it to customers who will want a 25% annual bonus. We also expect many present Help to Buy ISA customers to move across to the Lifetime ISA.

“Critics of the Lifetime ISA have said that the ease of withdrawing funds may encourage people to squander their retirement savings. However, there are incentives in place to keep your investment locked in for the long term, which is precisely why parents, grandparents and indeed younger investors like it. We have already had strong levels of interest expressed by customers who see the LISA as perfect for helping the younger generations of their family get started on their own investing plans."