Martin Lewis explains simple way to make £1,000 every year for free - 'A bonus from the state'

Martin Lewis outlined a simple way for Britons to make the money
Martin Lewis outlined a simple way for Britons to make the money
ITV
Dan Falvey

By Dan Falvey


Published: 27/01/2023

- 14:29

Updated: 14/02/2023

- 10:20

'The state will give you a 25 per cent boost on the money you put in'

Martin Lewis has outlined the simple way Britons can get an extra £1,000 a year for free.

The Money Saving Expert said it was possible to get a bonus of 25 per cent on savings put into a Lifetime ISA (LISA) account.


Money in the account can be used for buying a first property or on retirement.

He warned there are penalties for wrongly withdrawing the money
He warned there are penalties for wrongly withdrawing the money
ITV

Britons are allowed to invest a total of £4,000 into a LISA every 12 months, meaning £1,000 can be gained for free.

“The state will give you a 25 per cent boost on the money you put in," he said on the Martin Lewis Money Show.

“You can put in up to £4,000 a year so that’s up to £1,000 a year bonus from the state.

“Do be careful if you think the house you could buy could be above a £450,000 maximum LISA house.

“The LISA £450,000 [limit] hasn’t gone up since 2017.

"They should either wipe the penalty for people buying bigger [homes] or put that £450,000 up.

“Not the subject for today but I hope to hear back from the Chancellor on that because I don’t think it’s that fair.”

At the moment withdrawing money from a LISA that is not for retirement or a first property will see a penalty of 25 per cent.

Effectively, it wipes out any increases gained from investing.

Anyone between the age of 18 and 39 is eligible to open a LISA and can place savings in the account up to the age of 50.

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