A lifetime ISA (LISA) will be available in April 2017 to give some savers the chance to earn up to £32,000 in government bonuses.

It is a saving product designed for people saving for a new house or saving for retirement. Savers can only open a Lisa between the ages of 18 and 40. You can pay in up to £4,000 a year, but no more. At the end of the first year, the government will add a 25% bonus. From 2018/19, this bonus will be paid monthly. Since you can continue paying into a Lisa up until the age of 50, the potential eventual bonus is up to £32,000.

In addition to the government bonus, LISA’s are expected to pay out up to 1% interest

If you use the savings to buy a home, the property must be less than £450,000. The Government bonus can stack with partner’s bonuses potentially doubling the bonus.

You can withdraw the money penalty free when buying your first home, you are over 60, or if you have a terminal illness. Should you wish to withdraw the money sooner, you’ll have to pay a hefty exit fee of 25%