In 2018 we bought our first home as first time buyers and used our Skipton Lifetime ISA to fund our down payment. In this post you will learn why we chose Skipton Lifetime ISA, how the Skipton Lifetime ISA payout system works and what your experience has been with it. If you are about to buy your first home and have a Skipton Lifetime ISA, read on for how quickly our transfer received the money and how we found the whole process.
Since launching the Lifetime ISA over a year ago, I've championed how great they are for first-time buyers and told anyone who will listen that it's one of the best ways to save for a down payment on their first home. We opened our Lifetime ISA with the Skipton in June 2017, basically as soon as it became available. Before that we saved in aHalifax helps buy ISAwhich earned us around 4% interest.
There were a few key differences that led us to switch from using a Help to Buy ISA to a Skipton Lifetime ISA, namely:
- You could put as little as £200 a month into a Help to Buy ISA, while you could put up to £4000 into the Skipton Lifetime ISAat any time.
- The Skipton Lifetime ISA bonus was deposited into the account after the first year of its opening and monthly thereafter, meaning you could earn interest on the bonus. The Help to Buy ISA only paid the bonus if it was withdrawn by a submitter.
- The Skipton Lifetime ISA can still be used to save for retirement after some of the funds have been used to make a deposit, while a Help to Buy ISA was only intended for home purchases.
When we opened the Skipton Lifetime ISAs, we chose not to transfer the funds immediately as Skipton paid less than 1% interest and instead "let the clock tick" because it was open for a year. One of the rules is that the LISA must be open for a year before your carrier withdraws it. Just before the end of the fiscal year we transferred our Help to Buy funds which means we were eligible to receive the bonus and all the money was ready to buy our first home.
Wefound our dream house at the end of Apriland make an offer in early May. By mid-May we had found a broker and by mid-June he had completed our search and was ready to take our deposit. Skipton claims it can take up to 30 days for funds to be transferred from the LISA to your transport company, but we found this to be much quicker and I believe you can get it even quicker by pressing Skipton and so stay on the ball.
We didn't realize at first that you had to send two documents to Skipton to request the funds which delayed things a couple of days as it was a Friday when our transporter said he was ready for our funds Monday before I mailed the paperwork and then because I missed the special delivery it was cut off on the Wednesday before he received it. It then took another day for him to send it off, meaning Skipton probably only received the paperwork over a week after our transport company first asked us to transfer the deposit. Two important things to remember:
- Lifetime ISAs are relatively new and many carriers are unsure of what to do themselves, so familiarize yourself with what you need to do beforehand.
- Get the paperwork filled out and ready before you get to the deposit request stage so your carrier can just mail it off when it's ready (note the 30 days too).
The two papers you need to fill out are on Skipton's website. One is a form you fill out to give them your details (Investor Statement) and how much you want to withdraw, and one is your carrier's document with their bank details and company details. (Conveyancer's statement) After a week or so I called Skipton to follow up and they could see they had received the forms but without me having a completion date there wasn't much that could be done. Imagine my surprise when just a few days later I was emailed by one of their contact center reps.
It was a Saturday morning when I received the email, which took me by surprise as I thought things would only happen Monday through Friday. I was sent a document confirming that I wanted a Skipton Lifetime ISA withdrawal and asked me to use Adobe Reader to sign the documentation to confirm this. Once signed it was automatically saved and emailed to myself, Skipton and the carrier as confirmation that I had authorized the money to be transferred and a date for an agreed transfer date which was two days later was shown. They informed me that while this was the agreed transfer date, it could take an additional two business days for it to show up in the sender's account.
I was really impressed with this as I had assumed it would be a different form in the post followed by having to mail it back adding a few more days to an already lengthy process. On Monday I called the transport company several times to find out if the money was shown, but it was thereNothing. I remembered the two days and gave it until Tuesday afternoon and when it still didn't show up I checked my online account and saw the balance was still intact. I immediately called Skipton who kept me on hold for quite a while before coming back, apologizing and transferring the money on the spot. I actually received an automated email while still on the phone that the money had been withdrawn from my account, something I didn't even know existed prior to that point and would have been on the lookout for if I would have known
Two key learning points about the Skipton Lifetime ISA withdrawal process:
- Don't assume that they will because they agreed to defer the money to a specific date. constantly hunting. I lost two days giving them the benefit of the doubt.
- You will receive an email once the money has been moved. It is an automated email notifying you that a withdrawal has been made. This gives you peace of mind that the money has actually been moved.
On Wednesday the carrier had my money. It was 20 days after he first asked me about it which is good considering Skipton says 'up to 30 days' but I think we could have skipped at least another 7 days of that.
I've written our timeline below to give you an idea of what to expect but also how you can make changes to get your money to your attorney even faster:
9th of May: Make an offer
11. May: Carrier found, search started
20. June: Searches are coming back.
29. June: Conveyancer sends me an email asking for a deposit
4th of July: Conveyancer obtains Skipton Lifetime ISA Withdrawal Records from us
July 6th: Skipton receives completed paperwork
July 14th: Received email from Skipton asking for confirmation of money transfer
16th of July: Date when the money should be transferred
17th July: Called Skipton to find out why funds are still showing in MY account at 4pm
July 18th: Conveyancer confirms that funds are showing in his account
I hope this helps in your home buying process. If you have any other questions about the Skipton Lifetime ISA withdrawal process, don't hesitate to send me a message and I'll help if I can!
FAQs
How do I withdraw money from Skipton Lifetime ISA? ›
Process to request a withdrawal
Log in to Skipton Online or our mobile app and send us a secure message including; The account number and sort code for the account you'd like to transfer the funds to (the account must a UK bank or building society account held in your own name).
If we have received a completion date on your declaration form, we aim to release the money within 48 hours before your completion date. If we do not have this, we will release the funds to your conveyancer 30 days after we receive the request.
How do I withdraw money from my lifetime ISA? ›You can take your savings out of a Lifetime ISA when you're 60 or over. You'll pay a 25% charge if you withdraw money or transfer the Lifetime ISA to another type of ISA before 60. If you die your Lifetime ISA ends on the date of your death. There's no charge to withdraw the funds or assets from your account.
Can I transfer money from my Skipton account to my bank account? ›Once you are logged in to our app, you then need to select 'Transfer and Pay' from the menu bar at the bottom of the screen and tap on the account you want to move funds from or to. You will now need to select the option 'Transfer between my accounts'.
How long does lifetime ISA withdrawal take? ›Cash LISA withdrawals can take up to 3 working days to complete after being initiated. If you have a Stocks & Shares LISA, the withdrawal process can take 5-10 working days, as we need to sell down all of your investments before sending the proceeds to your solicitor as cash.
How long does it take to withdraw money from an ISA? ›Withdrawals requested in the afternoon or on non-working days will arrive in your bank account the next working day. You can only withdraw available cash from your account. If you need to sell investments first, funds usually take 4 working days to settle in your account, and shares usually 2 working days.
How long does lifetime ISA take to transfer into bank account? ›A transfer request should be completed within 15 business days from when the transfer request is received (for a Cash Lifetime ISA transfer) and 30 business days for a Stocks and Shares Lifetime ISA transfer.
How long does it take to transfer money from Skipton? ›If you do wish to transfer your Skipton Cash ISA to another provider, you will need to contact your new provider who will then contact us to carry out the transfer. We aim to process any request to transfer within seven working days from the day we receive the request from the new provider.
How long do Skipton bank transfers take? ›Transfers between Cash ISAs usually take up to 7 working days whilst transfers in from a Stocks & Shares, Innovative Finance or Lifetime ISAs can take up to 30 calendar days.
Can you transfer money from a lifetime ISA? ›For money you invested in previous years, you can choose to transfer all or part of your savings. If you transfer cash and assets from a Lifetime ISA to a different ISA before the age of 60, you'll have to pay a withdrawal fee of 25%.
How do I withdraw from Lisa without penalty? ›
Terminal illness
You can withdraw money before age 60 without paying any penalty if you are terminally ill with less than 12 months to live.
After your 14 day cooling off period, if you decide to close or transfer your ISA before maturity, you must withdraw the full amount and you will be charged the appropriate amount of interest on your account balance at the time of transfer.
How much does Skipton charge for transfers? ›We also pay a procuration fee for Product Transfers. We will pay a gross procuration fee of 0.30% for all residential Product Transfers and 0.35% for all Buy To Let Product Transfers to your network or mortgage club.
What banks are in Skipton? ›- Barclays Bank plc. Banks. Call Today. ...
- HSBC Bank plc. Banks. 480 yds | 61 High St, Skipton, BD23 1DW. ...
- Yorkshire Bank. Banks. 400 yds | High St, Skipton, BD23 1JR. ...
- Natwest. Banks. Call Today. ...
- Halifax. Banks. New Branch Opening Times. ...
- Allsquare. Commercial and Business Finance. ...
- Ecology Building Society. Building Societies. ...
- Lloyds Bank. Banks.
Your eligible deposits with Skipton Building Society are protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS), the UK's deposit guarantee scheme.
How much can I withdraw from my ISA? ›These permit a limited number of withdrawals of up to 10% of the balance without losing any benefits. Stocks and Shares ISA: Withdrawing money from Stocks and Shares ISAs is extremely flexible. You can initiate a Stocks and Shares ISA withdrawal at any time, but the Stocks and Shares ISA withdrawal must come from cash.
How many times a year can you withdraw from an ISA? ›You can withdraw from most ISAs whenever you want to without affecting the tax benefits. The exception is Lifetime ISAs.
What are the disadvantages of a lifetime ISA? ›The main drawbacks of the Lifetime ISA are that you will need to wait at least a year to claim your bonus. If you draw the money out before the age of 60 for anything other than buying your first property you'll have to pay a government penalty of 25% - which might mean you receiving less back than you put in.
Can I withdraw all my money from my ISA? ›You can take your money out of an Individual Savings Account ( ISA ) at any time, without losing any tax benefits. Check the terms of your ISA to see if there are any rules or charges for making withdrawals.
How long does it take for a withdrawal to be processed? ›The timing of a withdrawal depends on several factors including what time of day the withdrawal request is made and the institution receiving your funds, but most withdrawals take 3 to 4 business days before the requested funds are received.
How long does a pending withdrawal take? ›
If you see a pending withdrawal in your account, it may be for a couple of reasons: You scheduled a transfer of available cash to your bank account that hasn't yet cleared. Transfers take four business days to process.
Why do banks not do a lifetime ISA? ›The source said: 'The Lifetime Isa is trying to do two very different things: investing for later life — which normally involves the stock market — and saving a deposit, which is normally about cash. The two things don't fit well together. '
Can you transfer more than 4000 in a lifetime ISA? ›You can choose to transfer all, or just some, of your Help to Buy ISA into a Lifetime ISA – as long as you don't transfer more than your £4,000 annual LISA allowance during a single tax year. If you've already paid into your LISA this tax year, you can only transfer the amount that remains of your £4,000 allowance.
How long does the average ISA transfer take? ›Transferring from a stocks and shares ISA to a cash ISA
Allow 30 days to complete the transfer, but it depends on what types of investments you have. Unit trusts take longer to cash in than shares, for example.
Your specific bank transfer time will vary depending on a range of factors, including fraud prevention, different currencies, different time zones, and bank holidays/weekends. In general, the bank transfer time will be around one to five working days.
How do I contact Skipton cash ISA? ›If you're not sure about which ISA is right for you and need some help, you can speak to us face-to-face from the comfort of your own home, with our video appointment service Skipton Link. Alternatively, you can visit us in any branch or call us on 0345 850 1722 and we'll be happy to help.
What is the 12 month rule for lifetime ISA? ›If you become terminally ill and have less than 12 months to live, you can withdraw from your ISA without a government charge. You will still be eligible for the government bonus. On death, your Lifetime ISA will form part of your estate for inheritance tax purposes.
Can I transfer my lifetime ISA after 40? ›What if I'm between 40 – 49 years old? You can't open a new Lifetime ISA, but you can transfer your existing one. Additional deposits are allowed, you'll keep earning the government bonuses and interest on your balance.
Will I lose interest if I transfer my ISA? ›When you transfer your money to a new account a bank or building society will add up the interest you've accrued thus far and pay out. It does not matter when the interest payment date is. Some banks say 'interest paid on the account anniversary'.
How do I avoid withdrawal penalty? ›The IRS allows penalty-free withdrawals from retirement accounts after age 59½ and requires withdrawals after age 72. (These are called required minimum distributions, or RMDs). There are some exceptions to these rules for 401(k) plans and other qualified plans.
Can I withdraw money without funds? ›
If you choose to opt in to debit card and ATM overdraft, you are usually allowed to make ATM withdrawals and debit card purchases even if you do not have enough funds at the time of the transaction. However, you will generally incur fees on transactions that settle against a negative balance later.
How do you bypass withdrawal? ›- Request an increase in your daily limit.
- Make a withdrawal in person at a bank branch.
- Get a cash advance with a credit or debit card.
- Get cash back with a purchase at a store.
Your savings aren't protected from losses if you invest in a stocks & shares ISA. If you put money in a stocks & shares ISA, then invest it in funds, shares or bonds, then it's a 'risk-based investment', NOT savings. So, if the things you invest in don't do well, you could lose money - perhaps even all of it.
Why is my ISA losing money? ›While you are taking on a degree of risk with investing, money is a cash ISA will be losing money over the long-term if the interest rate on the account doesn't keep up with the rate of inflation.
Can I transfer my ISA to someone else? ›No. You can't transfer an ISA from one person to another. You'd have to withdraw money from your ISA so they could pay it into theirs and, in doing this, the tax benefits would be lost.
What is the interest rate on Skipton ISA? ›3.25% tax-free pa/AER variable
you're happy with a variable rate of interest that can go up or down. you'd like easy, flexible access to your money without affecting your ISA allowance. you want to be able to transfer in ISA savings from current and/or previous tax years.
- Login to Skipton Online or Skipton Mobile app and select 'Transfer & Pay' and select the account you want to pay out of.
- Select 'Withdraw'. ...
- If you request a transfer after 8pm, you may notice that the money appears to have left one account and not yet arrived in the other.
Skipton is the UK's fourth largest building society, with over one million customers, consolidated total assets of £33.6bn and a national presence represented by its network of 87 branches. Skipton offers mortgages, savings and restricted financial advice. It heads the Skipton Building Society Group.
How big is Skipton? ›The town has a population of around 15,000 people. Skipton is home to a 900-year-old medieval castle, which is open to the public for tours. The town has a range of independent shops and boutiques, as well as several high street retailers.
Does Skipton do online banking? ›We're making managing your accounts online easier than ever, with our app and Skipton Online. You can now manage your savings and mortgages anytime, anywhere you like.
Is Skipton a good lender? ›
Skipton Mortgages customer reviews
Skipton Building Society scores 4.4 out of 5.0 stars on independent customer review site Trustpilot, based on over 15,000 reviews making it "excellent" overall.
Based in Guernsey, one of the world's most reputable and well established financial centres, Skipton International is supervised by the Guernsey Financial Services Commission and is a participant in the Guernsey Banking Deposit Compensation Scheme.
Where is the safest place to deposit large sum of money? ›Savings accounts are a safe place to keep your money because all deposits made by consumers are guaranteed by the FDIC for bank accounts or the NCUA for credit union accounts. Certificates of deposit (CDs) issued by banks and credit unions also carry deposit insurance.
Where is the safest place to leave money? ›Treasury Bills, Notes and Bonds
U.S. Treasury securities are considered to be about the safest investments on earth. That's because they are backed by the full faith and credit of the U.S. government. Government bonds offer fixed terms and fixed interest rates.
- Login to Skipton Online and select 'Withdraw' next to the relevant account.
- If you're making a withdrawal to an external bank account, you'll need to provide details from your extra layer of security.
You are allowed to split this between a LISA (up to the maximum £4,000) and put the remainder in a cash ISA, stocks & shares ISA and/or an innovative finance ISA (for peer-to-peer investing) in the same tax year.
How do I withdraw all money from my account? ›- Use an ATM. If you have an ATM (Automated Teller Machine) card or debit card linked to your bank account you can visit an ATM to withdraw some cash. ...
- Write a Check for Cash. ...
- Fill Out a Withdrawal Slip. ...
- Link Your Account to a Peer-to-Peer Payment Service.
You can withdraw from your savings (after all, it is your money), but keep in mind that some banks may have monthly withdrawal limits. But there's no limit to the number of times you can make a deposit.
Can I withdraw all my money from my savings account? ›Yes, you can take money out of your savings account anytime; however, some financial institutions may only allow you to make up to six "convenient" transactions per month before they charge a fee. What's considered “convenient” is defined by your specific bank.
How long does it take to transfer money from an ISA to a current account? ›Just how long you have to wait for your ISA transfer depends on the type of account being transferred. Moving from one cash ISA provider to another should take no more than 15 working days. Transferring an investment (stocks and shares) ISA may take a while longer.