Skipton Building Society has confirmed that it will launch its cash Lifetime ISA on June 8, making it the first lender to offer the product.
Mortgage Strategy revealed in March that Skipton was the only lender who had signed up to offer the product.
The LISA can be opened online by depositing any sum from £1. The savings will earn an annual interest rate of 0.50 per cent.
The LISA is a government scheme introduced to top up savings for young adults and allows individuals between the ages of 18 and 39 to save up to £4,000 a year tax-free and receive a Government bonus of 25 per cent.
The saved money can then be used for either a house deposit or for retirement.
Several lenders will offer the investment version of the ISA but Skipton is the only provider to date to offer the cash scheme.
Skipton Building Society head of products Kris Brewster says: “As a mutual, we’ve been helping first time buyers and savers for over 160 years. The Lifetime Cash ISA could make a real difference to a new generation of savers by assisting them in getting a foot on the property ladder. That is why we’re excited to offer a product that will encourage future homeowners to save towards this significant milestone.
“There isn’t a one size fits all approach to saving so it’s important people pause to think about their future and have a range of long-term options in mind – as well as reviewing these plans on a regular basis.”
Skipton savers can split their £20,000 ISA allowance across a range of different products and make the Lifetime ISA a part of their wider savings portfolio.
In early May, Skipton launched an online register where those interested in the product could declare their interest. The society will be offering the product exclusively to those on this registration list from today through to Wednesday 7 June. Everyone who registered will receive a personal invitation from the society over the next two days giving them early access to the product.
Those who open a Cash Lifetime ISA and then take out a mortgage with the society will get £250 cashback.