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I was just wondering whether it would be possible to max out my LISA contributions (£4000) just before the end of the tax year (or any other time before the end of the tax year)? Would I still get the government bonus if I do so? I can't find any specific rules/guidance around this in any of my searches so far.

I was also wondering; what is the most efficient way of direct debiting my contributions in to a LISA (e.g. £4000 / 12 = 333.333r)? Should I set up a direct debit for £333 p/m or would it be easier to do say £400 p/m x 10, does it matter?

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The contribution limits are per year, so you can certainly make them all in a single lump sum at any time you like, including right at the end of the tax year, and you'll still get all the benefits like the government bonus. Of course you'll miss out on the tax-free growth up till that point.

Be sure to allow enough time for the payment to go through. If you haven't already opened the account that could take extra days or even weeks. Talk to the provider in advance if you're not sure about timescales.

For direct debit, I'd go for whatever makes sense for your own finances. 12 * £333.33/month is £3999.96, I wouldn't worry about missing out on the 4p. But given that it's already August, you'll need to contribute faster than that for this tax year anyway if you want to max it out. For later tax years 12 monthly payments would obviously be an option, and have the obvious advantage that you can just keep them going continuously if the limits don't change.

  • Thanks for the answer @Ganesh Sittampalam - I have recently opened a LISA account yet I haven't deposited yet. I think I'll take some time to think about my decision before pushing £4,000 into the account as I can't take it back! (Without a 25% fee). Now that I know I can max it out at any point before the end of the tax year! – jto Aug 16 '17 at 7:58
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    @jto The actual fee is only about 5% as 20% is reclaiming the government bonus. I think you can take it back before the end of the tax year without paying the fee, but you'd need to check. But agreed you should be sure about what you want to do before committing. – GS - Apologise to Monica Aug 16 '17 at 8:21

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