Published On: Thu, Mar 14th, 2024

Martin Lewis urges savers to put £1 in this bank account now to secure bonus | Personal Finance | Finance

has urged people to deposit at least £1 into a to get the ‘clock ticking’ so they can secure a bonus up to £1,000.

He told viewers of his ITV show they should open a Lifetime ISA now even with the minimum amount so they can get the 25 percent bonus.

The financial journalist said: “You may as well put £1 in now in case you want to use it in the future. Then the clock’s ticking and it’s been open a year.

“Great if you have kids and you want to put money in for them – get them to put a quid in now. The clever thing to do right now.”

A person can put up to £4,000 a year into a Lifetime ISA, with a 25 percent bonus on any savings, up to £1,000 a year.

But the bonus is only payable after the account has been open for a year, so it makes sense to open a Lifetime ISA even with only a small amount, to get moving towards the one-year mark when you can get the bonus.

The funds have to be used to go towards buying a first home or can otherwise be used when a person reaches the age of 60.

You have to be over 18 and under the age of 40 to open a Lifetime ISA, and you can save into it up until the age of 50.

The top-paying Lifetime ISA is currently with Moneybox, at 4.4 percent. Interest is paid monthly.

Another rule for the savings account is the funds can only go towards buying a property worth £450,000 or less.

Martin Lewis recently criticised the Spring Budget for not changing this rules given the recent spike in .

However, Chancellor Jeremy Hunt did announce some changes to ISAs, with a new additional £5,000 ISA allowance to be introduced for a British ISA.

Funds put in this new savings account will go towards investments in UK companies to help grow the economy.

Also as announced in , NS&I is to offer a British Savings Bonds, to go on sale early next month.

For the latest personal finance news, follow us on Twitter at @ExpressMoney_.

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