What is Lifetime ISA?
A Lifetime ISA is a UK ISA for buying a first home or saving for later life. The government adds a bonus on what you pay in, up to a yearly cap, and it counts toward your overall ISA allowance. Withdrawing for any other reason, before 60, usually costs a withdrawal charge that can take back more than the bonus.
Why Lifetime ISA matters
The bonus is generous but the withdrawal charge makes the money far less flexible than in an ordinary ISA.