How much can I deposit into a LISA?
You can save up to £4,000 tax-free each tax year, this is your annual Lifetime ISA allowance and counts towards you annual ISA allowance of £20,000.
The government will pay you a 25% bonus on your contributions, this means you can earn up to an extra £1,000 each tax year
How do I make a deposit into my LISA?
You can make deposits from your nominated bank account by either electronic bank transfer or cheque.
Remember - we will always ask you to use these details when making a deposit. If you’re ever asked to use different details do not send any money and contact us immediately.
Electronic bank transfers
Sort code: 40-02-50
(This may show up as HSBC, we only use them as our clearing bank)
Account number: 31344897
Payee: Paragon Bank PLC
Payment reference: Your Paragon account number or application reference number.
Cheque
Please make your cheque payable to:
Paragon Bank Re your name and savings account number/application reference number.
And send freepost to:
RTEX-LLUT-KKKE, Paragon, PO Box 850, Wallsend NE28 5BJ
Important information:
- When you enter the sort code it may show as a HSBC Bank PLC account because we use them as our clearing bank.
- It’s important to use a payee when depositing funds electronically, it protects you and makes sure you’re sending your money to the right person. When sending deposits to us please use the payee name Paragon Bank PLC, it’ll help ‘match’ the account you’re sending money to and the name associated with that account. If you get a ‘no match’ or ‘unavailable’ message please make sure you’re quoting the right account number, sort code and Paragon Bank PLC as the payee, you should then get a ‘match’ message from your bank or building society.
- Your payment reference makes sure we’re able to identify and apply your deposit to your Paragon account, without it we might have to return your funds or delay funding your account.
- If you have entered the sort code, payee and payment reference correctly, and still see a ‘no match’ or ‘unavailable’ message, please contact your bank or building society.
We will credit cheques to your account on the day we receive them, although it can take up to three days to clear the banking system. You’ll start to earn interest from the second business day after we receive your cheque.
How will I know you’ve received my deposit?
How long it takes for an electronic bank transfer to reach us will depend on your bank or building society. We will contact you when your funds have been credited to your account.
We will credit any money you deposit by Electronic Transfer or by transfer from another Paragon Account on the same day we receive it. We will contact you to confirm once we have received it. You should then be able to make a withdrawal on the same day, unless your Product Terms and Conditions do not allow it.
If we receive your deposit after 4pm (our transfer-in deadline) then your account will be credited the next day. If the funds reach us after 4pm, we will contact you when they have been applied.
If we are unable to credit funds to your account (for example if funds have been sent from an account other than your nominated bank account) and your funds are rejected, we will contact you and confirm they were rejected.
If funds are sent before 4pm and rejected, we will contact you to confirm the next business day. Rejected funds sent after 4pm will be returned the next business day and we’ll contact you the following business day.
What happens if I go over my Lifetime ISA allowance?
If you make a deposit that takes you over your annual Lifetime ISA allowance we will return that whole deposit.
You can make a new deposit as long as it doesn't take you over your annual allowance.
Remember your Lifetime ISA allowance is part of your overall annual ISA allowance.
How does the ISA Wallet work with LISAs
Our ISA Wallet allows you to spread your tax-free ISA allowance across multiple ISAs with Paragon.
Your annual LISA allowance is part of your annual ISA allowance. So, you can spread your remaining ISA allowance across our ISA range.
Is the Lifetime ISA flexible?
No, the Lifetime ISA is not flexible. So, any funds you withdraw are not only potentially subject to the 25% government withdrawal charge but also can’t be replaced in the same tax year without using your LISA allowance.
As part of the government’s Coronavirus response, the 25% government withdrawal charge
has been temporarily reduced to 20% between 6 March 2020 - 5 April 2021.
Can I pay into both a Help to Buy ISA and a Lifetime ISA and will I get the bonus on both if I do this?
You can pay into a Lifetime ISA and a Help to Buy ISA at the same time, but you can only use the government bonus from one towards the purchase of your first home.
Can I have more than one Lifetime ISA?
You can have more than one LISA but only pay into one in any tax year, up to the annual Lifetime ISA allowance.