What's involved in George Osborne's new Lifetime ISA?

So what what’s involved?

From April 2017 anyone aged between eighteen and forty can open a Lifetime ISA and put away up to £4,000 a year.

Any savings you put into it before your 50^th birthday will earn an addition bonus of 25% bonus from the government.

The savings and the bonus can be used towards a deposit on a first home worth up to £450,00 or after your 60^th birthday you can take out all the savings tax-free.

The money can be withdrawn before you turn 60, but you’ll lose the government bonus and any interest on it.

Stephen Noakes, Managing Director, Retail Customer Products at Lloyds Banking Group commented:

“As part of our Helping Britain Prosper Plan, we are committed to supporting people to save and as such we are keen to explore new ways to help people make the most of their money. Saving can be particularly difficult for young people and those on low incomes, so we look forward to engaging through the consultation to ensure that Help to Save and the Lifetime ISA offer a genuine solution to as many people as possible.”