Base Interest Rate for Lifetime ISA
The base interest rate for Lifetime ISA is currently 3.61%. The interest rate is variable which means that it can fluctuate over time according to the market conditions. In the event of a change in the interest rate, you will be promptly notified to ensure transparency and awareness of the performance of your account.
The base rate of 3.61% is paid into your Lifetime ISA account on the last business day of the following month and we can't change the date or the destination of the payment.
The base gross rate used for interest calculations is 3.56%, not 3.61%.
The 3.61% figure represents the Annual Equivalent Rate (AER), which reflects what the interest rate would be if interest was compounded annually. For monthly calculations, the gross rate of 3.56% is applied.
Plum Bonus for Lifetime ISA
Plum also offers a bonus interest rate of 1.00% for the first 12 months of your Lifetime ISA with Plum, resulting in a total interest rate of 3.61%. After the 12 months, the interest rate reverts to the base rate, as can be seen above, currently at 3.61%.
Notes for the Plum Bonus:
The bonus rate of 1.00% will be paid into your Lifetime ISA on the 13th month, as a whole payment.
The bonus rate of 1.00% is applicable both for money that you deposit directly via the app and for transferring your LISA from another provider.
If you make an unauthorized (early) withdrawal, the Plum Bonus will be cancelled for your account.