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:
- Select business account if asked for an account/payee type.
- Make sure you use the right payment reference; it helps us deposit your savings to your Paragon account without delays.
- It’s important to use “Paragon Bank PLC” when depositing funds electronically, it protects your savings by making sure you’re sending money to the right place.
- If you have entered all payment details correctly and you’re still having difficulty, 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?
On the same day, as long as we receive it before 6pm. If we receive it after this, it will be deposited into your account the next day. Alternatively, if you are making a payment via CHAPS and we receive your payment after 4pm your account will be credited the next business day. How long it takes for a payment to reach us will depend on who your nominated bank account is held with.
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 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 6pm and rejected, we will contact you to confirm the next business day. Rejected funds sent after 6pm 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.
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.