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Save smart for your first home or retirement

Introducing the Newcastle Cash Lifetime ISA: let us help you save smart for your first home or retirement, boosting your savings with a UK government-backed bonus of 25% – tax free, plus interest.

Available for 18 to 39 year-olds to open, a Lifetime ISA (LISA) enables you to save up to £4,000 tax-free each year, which is topped up by the government’s 25% bonus, up to your 50th birthday.


Tax free pa/AER*

Newcastle Cash Lifetime ISA

View product details and apply

What’s the catch? You will only receive the government’s 25% bonus if you go on to use the savings in your LISA towards the deposit on your first home and/or towards your retirement. 

If you make a withdrawal not connected to these two events then a 25% penalty will apply to the amount you withdraw. This will recover the government’s bonus and you will get back less than you have saved.

For those saving to buy their first home, you must be saving for over 12 months to use the funds. If you are saving for retirement, then you’ll be able to access your savings penalty free upon your 60th birthday.

Your LISA limit forms part of your overall ISA limit. The Newcastle Cash Lifetime ISA is managed online, by telephone or post. You must apply for the account online and have a minimum opening deposit of £1.

It’s OK to change your mind – you are able to cancel the account within 30 days of the opening date without incurring any penalties.

A step closer to your first home

Using your Lifetime ISA to buy your first home.

An extra boost for later life – saving for retirement

Using your Lifetime ISA to fund your retirement.

Lifetime ISA FAQs and documents

Get a quick answer to all your Lifetime ISA questions

View our LISA FAQs

Lifetime ISA Conveyancer Declaration form
Lifetime ISA Investor Declaration form

How the government bonus works

HMRC calculate bonus payments from the 6th of the month to the 5th of the following month based on what you’ve paid in.

Your bonus is paid into your account within 14 days of the 20th day of the following month. Interest is paid by Newcastle Building Society on an annual basis.

The LISA is a long-term savings product designed to incentivise saving towards your first home and/or retirement. If you withdraw for any other reason (excluding terminal illness with less than 12 months to live or death) you will incur a charge of 25% on the total funds - recovering the government bonus, plus an extra charge penalising you for the withdrawal.

You can transfer your LISA to another LISA provider without incurring the withdrawal penalty. We accept LISA transfers into the Newcastle Cash Lifetime ISA however these must be transferred in full and proceeds are made up of cash only. 

As the LISA is a government savings scheme, it may be subject to change. This account is covered by The Financial Services Compensation Scheme.

To find out more about the government’s Lifetime ISA scheme, visit


You should consider if saving in a cash LISA is the right option for saving towards your retirement. If you are employed, you should consider the potential availability of a workplace pension scheme through an employer, which provides employer matched contributions, and your tax position. If you save in a LISA instead of enrolling in, or contributing to, a pension scheme from your employer or personal pension scheme:

  • You may lose the benefit of contributions by an employer (if any) to that scheme; and
  • Your current or future entitlement to means tested benefits may be affected (these depend on the amount of income and capital you have, which includes savings).
  • We need to receive your initial investment within 30 days of account opening and prior to your 40th birthday (unless you are transferring an existing LISA from another provider).

Looking for something more flexible?

We offer many saving options, covering a range of needs. From bonds and cash ISAs to easy access accounts, check out our range of savings products.

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*Tax-free PA/AER

Tax-free refers to the contractual rate of interest payable, where interest is exempt from income tax. The tax information provided is based on the current law and HM Revenue & Customs practice, both of which may change. AER stands for the Annual Equivalent Rate, a notional rate which illustrates what the interest rate would be if paid and compounded on an annual basis.