ISAs  

Government urged to rethink Lifetime Isa limit

Further research from OneFamily showed that 29 per cent of those with money in a Help to Buy Isa said they didn’t want to manage two accounts simultaneously and more than a third of consumers would transfer if they could deposit the full amount into the Lisa in one go.

Anna Bowes, co-founder of Savings Champion, said it was generally agreed the Lisa was the better option for first-time buyers than the Help to Buy option.

She said: "Once again, too many rules and options can make it very hard for savers to make the right choice. 

"They may have opted for a Help to Buy Isa either before the Lisa was introduced or in error, as they were not aware of the differences. 

"Savers should be able to switch if it becomes clear the Lisa would be a better choice. I can’t really see any need for there to be a restriction on how much can be transferred and when."

Ms Bowes added the industry had seen restrictions on the amount of money that could be deposited into a cash Isa or the ability to transfer between different types, but noted that these had now been rectified to make the Isa fairer for all and less complex.

She added: "So, it would be sensible to extend the simplicity of the transfer rules to the Help to Buy and Lisa as well."

imogen.tew@ft.com

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