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Last day to get free £1k to put towards first home before tax year ends

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money from the government to save for your first home or retirement. The £1,000 is issued as a bonus for those who max out their Lifetime ISA (LISA) each tax year.If you have a LISA, you can put away £4,000 each year with the government giving a 25% bonus on top of what you've saved.It means you can get £1,000 free each tax year, or £2,000 if you're a couple and both have an account to max out.The bonus is paid into your LISA and your money also accrues interest as well, although you get it on your contributions.You'll still get the bonus on smaller amounts too, so if you can save £1,000 in one year, you'd get £250 from the government.But now time is running out to make the most of it as the current tax year ends today (April 5).The new tax year will begin tomorrow (April 6).You can open a LISA account if you're aged between 18 and 39 and the money can be used for a first home or retirement.If you take the money out for another reason, you'll lose the bonus and pay a 25% penalty.The maximum bonus is £33,000 if you open it at 18 and max it out until you turn 50, so you can't pay into it beyond that age.If you're saving for your first home, you won't find a regular savings account from a bank or lender that pays 25% interest.The top easy-access account right now is from Chase Money which offers 1.5% interest and has a no minimum deposit.Cynergy Bank is the second which offers 1.1% interest and has a minimum deposit of £1 where you can pay in £1million.Want all the biggest Lifestyle news straight to your inbox?

Sign up for our free Daily Star Hot Topics newsletterVirgin Money M Plus account tops both with a rate of 2.02%, but you can only pay in up to £1,000.

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