Hargreaves Lansdown may be the first provider to offer the lifetime ISA (LISA) as it plans to launch the product on the first day possible.
The HL LISA will be made available to investors on the first day of the new tax year - 6 April - and can be invested in over 13,500 funds, shares, investment trusts, exchange-traded funds (ETFs) and corporate bonds.
Savers will be able to manage the account online and via the Hargreaves Lansdown apps.
The LISA was announced in former Chancellor George Osborne's budget last March, and will be available to 18 to 40-year-olds to put aside up to £4,000 annually to save for a deposit for a home or for a fund in retirement.
Money put into the LISA will then receive a 25% bonus from the government, which will be paid at the end of the 2017/18 financial year, and then monthly from April 2018. Savers will forfeit the bonus if they use the LISA to pay for something other than a house deposit or retirement.
The policy has provoked much criticism, with many in the industry warning it may detract younger savers from saving into pensions, and therefore not benefit from employer contributions.
Nevertheless, Hargreaves Lansdown incoming chief executive Chris Hill said the firm was responding to "considerable interest".
"It has been a huge team effort right across the business to be able to launch our LISA on time," he said. "There is already considerable interest in the LISA as it ticks so many boxes for younger investors looking to save for their first home.
"The LISA builds on the success of the Help to Buy ISA in encouraging people to save to get on to the property ladder. However, it is a much better product with higher contribution limits, bonuses paid earlier and the option to invest in stocks and shares rather than just sit in cash, which should reduce the time it takes for younger people to buy their first home."
Hargreaves Lansdown's offering is bolstered as a number of other providers have confirmed to PP that they would not be offering the LISA from April.
Aviva said it would not yet offer the product as it wanted to see how the market develops.
"We support the LISA as we believe it will encourage greater engagement in saving for the future, although we do have some concerns about LISA being seen as a replacement for a pension. We won't have a LISA in place in April as we want to see how the market unfolds."
Standard Life also stated it had postponed introducing the product until it better understood rules and customer engagement with the product.
"While we won't be offering the lifetime ISA from April, we do intend to launch at some point in the future," a spokesperson said. "We had deferred our decision on launch until we had clear rules from HM Revenue and Customs and the Financial Conduct Authority and until we had reviewed how customers engage with this new product."
Zurich said it would not launch the product until it was clear about the size of the market.
Head of retail platform strategy Alistair Wilson said: "It is still unclear what the scale of customer demand for the LISA will eventually be. Recent research we conducted with YouGov found that two-thirds of eligible consumers are still unware of the LISA.
"Like many other providers, we will be monitoring how the market develops so that we can respond appropriately."
Royal London said it did not yet have a firm position as it was focusing on its auto-enrolment (AE) offering.
"Royal London continues to be focused on the successful implementation of AE providing the necessary support for customers, employers and their advisers and ensuring customers have the best possible outcomes when choosing to use the pension freedoms," a spokesperson said.
"We do however recognise the impact that LISA could have on long-term savings and so continue to review the position on whether it is appropriate to offer a LISA, which includes whether to offer a LISA wrapper on the Ascentric platform, should we decide to go ahead."
The government will set up an infrastructure bank to support investment and to co-invest alongside investors including pension funds.
The Retail Prices Index (RPI) will be reformed and aligned with the housing cost-based version of the Consumer Prices Index, known as CPIH, by 2030, the Treasury has confirmed.
Estatee agent denies a shareholder’s absence from voting is an issue, finds Minerva Analytics.
In this live blog, Professional Pensions' sister title Investment Week collates all the breaking market news, analysis and opinion on equity, bond and currency movements as well as the impact of trade wars, tightening monetary policy and the Brexit negotiations....
Attractive valuations and prospects for economic recovery support small-caps