Lifetime ISA savers could boost savings by £2,000 in 2020 - but they don't ...

LIFETIME ISA savers are able to boost their savings in the account by up to £1,000 each tax year. Some may be able to end up with an extra £2,000 bonus in 2020 - but only if they take action ahead of an upcoming deadline.

PUBLISHED: 11:08, Sat, Mar 14, 2020 | UPDATED: 11:08, Sat, Mar 14, 2020

The Lifetime ISA offers eligible savers a 25 percent government bonus on their savings - up to £1,000. It's possible for those with this type of account to pay in up to £4,000 each tax year up until they reach the age of 50.

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The £4,000 limit is included in the total £20,000 ISA allowance for the 2019 to 2020 tax year.

This tax year is set to end in a matter of weeks, with the tax year end falling on April 5, 2020.

On the following day, April 6, 2020, the new tax year - 2020 to 2021 - will begin.

This means that the ISA allowance, and the Lifetime ISA allowance, will reset on this date.

READ MORE: Martin Lewis: Mortgage holders could save £30 a month as interest rates change

Lifetime ISA: Calculator in picturesLifetime ISA: The 2019 to 2020 tax year ends on April 5 (Image: GETTY)

Ahead of this key date, Jen Lloyd, Savings Expert at Skipton Building Society, has explained why now could be a good time to consider depositing money into their Lifetime ISA.

Speaking exclusively to Express.co.uk, Ms Lloyd said: “As the end of the tax year draws to a close, it’s a good time to be thinking about your financial goals and how you can maximise your savings.

"With the upcoming April 6 deadline, savers can cash-in on their tax-free savings by depositing up to £20,000 in their current Isa (the maximum annual ISA allowance).”

Ms Lloyd went on to explain why some people may look to make the most of the £4,000 allowance ahead of this tax year end.

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