Martin Lewis has told everyone between the ages of 18 and 40 to put £1 into a new account so they can access a “bonus instantly” in the future.

The Money Saving Expert was speaking at this year’s Ideal Home Show when he gave listeners a quick lesson on Lifetime ISA’s.

He explained: ““If you are 18,19,20 up to 40, or your child or your grandchild is 18 up to 40 and they have never bought or owned a house in any way, get them to put £1 in a lifetime ISA.

“One pound, because then you have opened your lifetime ISA and then you started the clock ticking for that one year so that after a year if then they decide they want to use it, they can put £4,000 in and they can get the bonus instantly. So get the clock ticking now.”

Barrhead News:

He previously told viewers of the Martin Lewis Money Show Live on ITV that you get a 25% bonus on your savings when you put money into a Lifetime ISA (LISA) account.

You can put up to £4,000 into a LISA each year, meaning you could receive £1,000 completely free.

However, you have to use any money put into a LISA on your first property or on your retirement.

Martin explained there were “some issues with the lifetime ISA” do listeners at the Ideal Home Show.

He said: “The first one being if you take the money out for any other reason than buying your qualifying first-time property, or you leave it until you're age 60, you pay a penalty.

“Now here's how the penalty works. you know you've got a 25% on the way in. You lose 25% On the way out.

“Now that sounds like you get back what you put in doesn't it? But let's just do a very simple maths again here.

“I've got 100 quid; it goes up by 10% How much have I got 110. If 110 goes down by 10% How much have I got? 99.

“So goes up by 10 goes down by 10. I've got less than I started with goes up by 25 goes down by 25. I have 6.25% less than I started with.

“So, there is an effective 6.25% penalty on withdrawing your money if not for buying a house if not for saving until you're in retirement which means the lifetime ISA has some risks applied to it”