A Lifetime ISA, or LISA, is a long-term Individual Savings Account (ISA) that comes with an attractive %25 government boost. The purpose of a LISA is twofold: it allows you to save for either your first home, with a maximum property cost of £450,000, or for your retirement. By using a LISA, you can save up to £4,000 every year.
In this guide, we will walk you through the ins and outs of LISAs, helping you understand how they function, determining if they are the right choice for you, explaining how to receive the bonus, and providing recommendations for the best options available.
The core benefits of getting a LISA are the following:
Being able to save up to £4,000 each year
A 25% bonus from the government (up to £1,000 a year)
A bonus is paid until you reach the age of 50
Growing your money free from UK tax (it’s not subject to CGT or Income Tax)
Best Stocks and Shares LISA Providers Reviewed
While they may prove beneficial to some, like all investments, Stocks and Shares LISAs do come with risks and may bring you less than what you invested in the first place.
Instead of keeping your funds in cash, stocks and shares LISAs let you invest your money in the stock market. Below, we review the three best investing LISA providers.
Top Stocks and Shares LISA Providers at a Glance
Name | Score | Visit | Disclaimer | |
---|---|---|---|---|
![]() | 7.9 | Visitajbell.co.uk | ||
![]() | 8.3 | Visithl.co.uk | ||
7.6 | Visitnutmeg.com |
1. AJ Bell – Best Low-Cost Platform + Wide Investment Choice
Platform Fees | 0.25% for shares (capped at £3.50 per month), between 0.25% and 0% for funds. |
---|---|
Dealing Fees | £9.95 for shares, ETFs, gilts, and corporate bonds, £1.50 for funds |
Minimum investment | £500 |
Investment options | Stocks, ETFs, gilts, bonds, investment funds |
Interest on uninvested cash | Between 1.15% and 1.65% AER |
Regulation and Protection | FCA |
AJ Bell is a low-cost investment platform suitable for investors of all experience levels. What we like about AJ Bell is that it provides you with different levels of guidance, a variety of investment tools and valuable advice.
I appreciate AJ Bell’s low-cost dealing and capped platform fees. The wide range of investment options suits my needs, whether I’m just starting or managing more advanced investments. It's an excellent choice for anyone looking for flexibility and cost efficiency.
Its platform fees is 0.25% of the value of shares in the account divided by 12 and is capped at £3.50 per month. This is better if compared to both Hargreaves Lansdown and Nutmeg with their (uncapped) platform charges set at 0.45% a year.
AJ Bell’s share trading fee is also reasonably priced.
However, compared to Nutmeg, AJ Bell’s minimum single investment is much higher at £500 compared to Nutmeg’s £100. Their regular monthly minimums are the same at £25.
Also, the platform offers you several ready-made options as well as plenty of choices if you want DIY investing: over 2,000 funds, 450+ investment trusts, bonds, exchange-traded funds, and shares on 24 markets.
- Low cost dealing
- Capped platform fees
- Suitable for different investor experience levels
- Competitive choice of investments
- Expensive platform fee
- £1.50 fund trading fee
- High initial investment at £500 for lump sums
Name | Score | Visit | Support | Mobile | Security | Commission | Disclaimer | |
---|---|---|---|---|---|---|---|---|
![]() | 7.9 | Visitajbell.co.uk | Phone, Live Chat, Email | Android, iOS | 2FA, Biometrics |
2. Hargreaves Lansdown – Best Investment Choice
Platform Fees | Between 0.45% and 0.10% for funds, 0.45% for shares (capped at £45 per year) |
---|---|
Dealing Fees | Between £11.95 and £5.95 based on the number of deals |
Investment options | Funds, stocks, ETFs |
Interest on uninvested cash | Between 1.26% and 2.27% AER |
Minimum investment | £100 |
Regulation | FCA |
Hargreaves Lansdown’s LISA provides you the option to invest in over 3,000 funds (compared to 2,700 at AJ Bell), ETFs, shares, and bonds.
I find Hargreaves Lansdown appealing for its extensive investment options and solid customer support. However, the higher dealing fees can be a bit off-putting. For investors who prioritise a great reputation and customer service, it’s a strong option.
The platform also offers ready-made portfolios, meaning you can have a Stocks and Shares LISA at HL even if you’re new to investing.
However, the fees for dealing are somewhat hefty at £11.95 charge compared to £9.95 at AJ Bell. However, fund dealing is free of charge, whereas AJ Bell charges £1.50.
Generally, what you get with HL is the security of a company with a long tradition and investing reputation, great customer support, and wide investment choice.
- Outstanding investment choice
- Low minimum investment
- Great customer support
- Great reputation
- No demo account available
- Fees can be quite high for ETFs
- You cannot transfer an existing LISA
3. Nutmeg – Best for Beginner Investors
Platform Fees | 0.45% on Fixed Allocation Portfolio, 0.75% on the remaining three |
---|---|
Investment Options | Managed, no DIY investing |
Minimum Investment | £100 |
Transfer of an existing LISA | No |
Regulation | FCA |
If you opt for a Nutmeg LISA, you’ll be able to choose between four investment styles: Fixed Allocation Portfolio (requires no work on your part, 0.45% fee), Smart Alpha Portfolio run by J.P. Morgan (0.75% fee), Fully Managed Portfolio (0.75% fee), and the Socially Responsible Fully Managed Portfolio (0.75% fee).
I like Nutmeg for its simplicity and the ability to let experts manage my investments. It's perfect for beginners who want a hassle-free experience, but it might not suit those who prefer DIY investing or want a wider variety of investment options.
It offers a balance between reasonable fees and investments run by financial experts. Nutmeg offers free advice to its clients and allows you to see the performance of your investments at all times. However, there are no DIY investment options at Nutmeg and you cannot transfer in an existing LISA.
- No subscription fee
- Ideal for beginner investors
- Low minimum payment at £100
- Four investment styles
- Not for DIY investors
- Minimum deposit of £500 for stocks and shares ISA
- You cannot transfer an existing LISA
Name | Score | Visit | Disclaimer | |
---|---|---|---|---|
7.6 | Visitnutmeg.com |
Best Cash LISA Providers Reviewed
With a cash Lifetime Individual Savings Account, you can grow your fund for a home or any other investment for retirement.
Top Cash LISA Providers at a Glance
Name | Score | Visit | Disclaimer | |
---|---|---|---|---|
7.3 | Visitmoneyboxapp.com | |||
![]() | 7.0 | Visitwww.paragonbank.co.uk/ | ||
![]() | 7.8 | Visitbeehivemoney.co.uk |
1. Moneybox – Best Low-Cost Cash LISA with High-Interest Rate
Platform Fees | 0.45% per year |
---|---|
Interest Rate | 3.5% AER (variable) |
Regulation | FCA |
Minimum Starting Investment | £1 |
High street presence | No (App-only) |
It offers a high-interest rate of 3.5% in the first year, which is undoubtedly the highest in the market at the moment.
I find Moneybox appealing for its high initial interest rate of 3.5%, but I am aware it drops after the first year. The free mortgage advice is a big plus, especially for first-time homebuyers, though the inability to transfer money between accounts is a drawback.
In comparison, Paragon offers an interest rate of 2.50% AER, so even after the rate at Moneybox falls to 2.75% in the second year, it still holds the same place.
The financial experts at Moneybox can help you buy your first home through free mortgage advice, which lets you handle everything in one spot.
- Get a 25% government bonus, conditions apply.
- Housemates feature: linking LISA to your partner’s LISA so you can see how much you both saved
- Home-buying gift feature: gift deposits through links
- Free mortgage advice service
- Interest rate drops after 12 months
- Could be relatively expensive
- Unable to transfer money between accounts
Name | Score | Visit | Disclaimer | |
---|---|---|---|---|
7.3 | Visitmoneyboxapp.com |
2. Paragon – Best Customer Support
Regulation | FCA |
---|---|
Interest Rate | 2.5% AER |
Minimum Investment | £1 |
Paragon’s Cash Lifetime ISA offers the simplicity of online service with additional options and support through post and phone.
I like Paragon for its simplicity and excellent customer support. The 2.5% interest rate is competitive, and the £1 minimum investment is perfect for those just starting out. However, I wish they offered an app for easier management.
The minimum investment of £1 means you can start saving even if you are still a student or have inconsistent income.
However, what sets Paragon apart is its top-notch customer support, enabling you a smooth experience without having to go to a branch.
- Quick and easy online setup
- Competitive interest rate of 2.5% AER
- Great customer support
- Ideal for newcomers, with a low £1 minimum investment
- No app
- Limited language support
- Interest rate may not keep pace with inflation
Name | Score | Visit | Disclaimer | |
---|---|---|---|---|
![]() | 7.0 | Visitwww.paragonbank.co.uk/ |
3. Beehive – Best for Free Mortgage Advice + High-Interest Rate
Regulation | FCA |
---|---|
Interest Rate | 3.0% AER |
Minimum Investment | £1 |
Beehive teamed up with Mortgage Advice Bureau to provide fee-free advice to Homebuyer LISA holders, providing access to over 90 lenders. This service is also offered by Moneybox, but it is not available to Beehive’s Retirement LISA holders.
Beehive offers a solid 3.0% interest rate, which is consistent over time. I appreciate the easy setup and free mortgage advice, but the lack of high street presence and the need to decide on the LISA type upfront might not suit everyone.
However, the two providers differ in terms of interest rates. While Moneybox has a higher interest rate in the first year with 3.50%, including a bonus rate of 0.75%, which falls away after 12 months, Beehive offers 3.0% the whole time, making it more lucrative after three years.
However, what Beehive doesn’t offer on its Retirement LISA is a transfer-in option. So while these two providers are similar, these differences could affect how they work for your needs.
- Easy to set up and use
- Free mortgage advice
- Open with £1
- High-interest rate
- No high street presence
- Two types of LISA accounts means you need to decide the purpose right away
Name | Score | Visit | Disclaimer | |
---|---|---|---|---|
![]() | 7.8 | Visitbeehivemoney.co.uk |
How Do We Rate & Review Providers?
We have used the following criteria when reviewing and picking which LISA providers to include on our list:
Interest rates: We prioritised providers offering the highest interest rates to help your savings grow faster. However, we didn’t just look at headline rates—we also examined how consistently these rates are maintained over time. Some providers offer promotional rates that drop significantly after a few months, which can impact your long-term growth. Personally, when I first opened a LISA, I made the mistake of chasing a high introductory rate without realising it would plummet shortly after. Now I always look for stable and transparent interest policies.
Interest on uninvested cash: For Stocks and Shares LISAs, we considered whether providers pay interest on uninvested cash—an often overlooked factor that can make a real difference, especially during periods of market volatility when you might want to hold back from investing temporarily. The only exception is Nutmeg, which doesn’t offer DIY investing and thus doesn’t apply here. Still, we included Nutmeg for its ease of use and beginner-friendly approach, which I found especially helpful when I first started exploring investment options. Its ready-made portfolios gave me the confidence to begin investing without feeling overwhelmed.
Regulation: All LISA providers featured on our list are regulated by the Financial Conduct Authority (FCA), which ensures that they operate within strict financial and ethical standards. Moreover, all are covered by the Financial Services Compensation Scheme (FSCS), meaning your savings are protected up to £85,000 per institution. Knowing this gave me peace of mind when transferring my savings to a new provider—I felt reassured that my money was safe, even in the unlikely event of a firm going under.
Customer support: We assessed the quality of customer support, ensuring that all chosen providers offer a decent to outstanding level of service. This includes availability, responsiveness, and the ability to handle issues efficiently. For instance, Hargreaves Lansdown consistently impressed us with its knowledgeable and helpful support team. When I had a question about transferring my LISA, their staff patiently walked me through the process and even followed up to make sure everything had gone smoothly—something that truly stood out to me.
What Is a LISA?
A Lifetime ISA is a type of Individual Savings Account, a government product designed to help people reach two important life goals: buying a first home and (additional) saving for retirement. Here are the main characteristics of LISAs:
LISAs are exempt from tax.
You get a 25% government bonus on your savings
Your yearly allowance is capped at £4,000 in a tax year
You can only pay into your LISA (and receive a bonus) until the age of 50
Withdrawing the savings before the age of 60 or for purposes other than buying a first home incurs a 25% penalty.
You need to be between 18 and 40 years old
You need to be a UK resident or a crown employee (or their partner)
If you want to use it to buy a home, you must be a first-time buyer
There are two types of LISAs: Cash LISAs and Stocks and Shares LISAs (also known as Investing LISAs). And we’ll get into both of them below.
Stocks and Shares Lifetime ISA
A Stocks and Shares LISA builds your money pot not through interest, but through (tax-free) investing in stocks and shares. So instead of money simply accumulating, it is injected into the market where it has the potential to grow and yield returns.
An investing LISA is an option for people who have long-term savings in mind. In this case, there is some chance for the market to iron out any fluctuations in value in case of potential loss. There’s more time for you to make changes if things go south and you need your LISA as a retirement fund.
For example, if you’re 18 and plan to wait more than five years to see your homebuying fund grow, a Stocks and Shares LISA makes sense.
Are Stocks and Shares LISAs risky? Yes. Any investment has the potential to fail and you could get less than you invested in your LISA. However, this LISA also carries the potential (but not the promise) for higher gain.
Stocks and Shares LISAs come with different investment styles. They vary by approach (e.g. from cautious to more adventurous), and level of investor input (from ready-made to DIY).
However, investment products come wrapped in a lot of financial jargon. To understand what your provider is offering, it might help to look at the following table:
Investment product | Risk Exposure | Average Returns | Key Features |
---|---|---|---|
Stocks | High | 8-10% | Dividend income, capital gains |
Mutual funds | Medium to high | 4-10% | Diversification, professional management |
Index funds | Low to medium | 4-10% | Low fees, diversification |
Bonds | Low to medium | 1-5% | Fixed income, lower risk than stocks |
ETFs | Medium to high | 4-10% | Low fees, diversification |
Cash Lifetime ISA
A Cash Lifetime ISA is more straightforward than its Stocks and Shares counterpart. You pay into your LISA just like into any other savings account and collect interest plus the government bonus.
It doesn’t have the same potential for growth as a Stocks and Shares LISA, but on the other hand, it's not as risky as you’re not investing in the stock market.
It’s best for people who aren’t comfortable with risk or who have a shorter-term savings plan in mind. In this case, the most important metric for you is the interest rate, the higher the better.
With Cash LISAs, interest is paid on your contributions and on the state bonus that is already in your balance.
How Does a LISA Work?
LISA is a government product started in 2017 to help people purchase their first homes of up to £450,000 and to help people save for retirement.
According to HMRC, over 550,000 people got a LISA in the UK between 2017 and 2022, and around 50,000 bought a house with a LISA in the tax year 2021.
As Lifetime ISAs have a dual purpose, we will get into the working model of each in the next sections.
LISAs for First-Time Buyers
LISAs are popular among first-time home buyers who intend to live in their own homes (rentals and holiday homes do not qualify). They buy a home with a traditional repayment mortgage and use a solicitor or conveyancer; however, it should not cost more than £450,000.
This is tricky as the average price of homes rose by over 20% compared to 2017 when the LISA scheme was created.
Looking at today’s scenario, an average house in London is out of reach for LISA investors, making the question of raising the cap a burning one. So before you decide to opt for a LISA, research the housing prices in the area in which you want to purchase your home.
First-time home buyers can use their LISA for several purposes:
Deposit
Funds payable on completion (Purchase price minus the deposit)
Buying the land to build their own home
Buyers can’t use their LISA for other purposes, such as conveyancer’s fees, or mortgage payments.
When buying a home, do not withdraw the funds directly to avoid penalties, instead, your provider needs to pay your solicitor or conveyancer directly.
It has to be your first home in the UK and abroad.
Your LISA account needs to be at least 12 months old.
You need to buy it with a traditional repayment mortgage.
The home cannot cost more than £450,000.
You can use two LISAs to buy one property as partners.
LISAs for Retirement
The other function of the LISA is to save for retirement. However, there are significant differences between a retirement fund and a LISA, indicating it is not the best option for everyone.
Let’s look into the basics of using a LISA as a means to grow your pension pot.
You can only pay into a LISA until you’re 50. With private pensions, you can contribute to your pension pot tax-free until the age of 75.
You can access your LISA pension pot right after your 60th birthday. Whether you want to access all your funds or only a part, you will have unlimited access to your LISA funds, without any penalties.
A LISA is best as additional pension income, not a replacement for pension. If you don’t have a workplace pension, the LISA government bonus can help you grow your retirement savings. While a LISA can be a good option for self-employed people, in most cases, it doesn’t beat a pension.
Finally, you can use a LISA to buy your first home, and then open another one for retirement. If you’re lucky enough to have leftover funds after buying a home, you can use them to start saving for retirement.
Advantages and Disadvantages Associated With LISAs
With the 25% government bonus taking the spotlight, it’s easy to overlook other details about LISAs. So we broke them into a table:
- There’s a 25% bonus on your contributions, and you get up to £1,000 a year totally complimentary.
- You can have more than one LISA and other ISAs at the same time.
- It’s a tax-efficient solution for people buying a first home.
- You can transfer your LISA to a different provider if they have better rates.
- You can only contribute £4,000 a year, and your home can’t cost more than £450,000.
- You can only make contributions until the age of 50.
- Having a LISA can affect your entitlement to means-tested benefits.
- You can only withdraw after age 60, for buying a first home, or if terminally ill. Otherwise, you need to pay a 25% penalty, getting less than you paid in.
Lifetime ISA Rules
To round things up, here are the basic rules that govern LISAs:
LISAs have two purposes: buying your first home or as additional retirement savings
To open a LISA, you must be over 18 but under 40 and a UK resident.
Your first payment must take place before your 40th birthday.
You can make contributions until you turn 50.
Government bonuses also stop at 50.
Your cash continues to earn interest, and your investments remain active.
You can pay up to £4,000 each year. The government will add a 25% bonus to your balance, up to £1,000 per year.
Other people are allowed to pay into your LISA, e.g. your parents or grandparents.
Eligible withdrawals include three cases: buying your first home, being 60 or over, or becoming terminally ill.
All other withdrawals are considered unauthorised and come with a penalty of 25%.
You can have more than one LISA. However, you can only pay into one of your LISAs in one tax year.
Lifetime ISA rules have changed temporarily between 6 March 2020 and 5 April 2021. The government reduced withdrawal charge to 20%. When it comes to tax rules, they do change from time to time, and their effects would depend on your personal circumstances.
Lifetime ISAs and Tax Rules
There’s nothing more exciting than taxes — said no one ever — but understanding them is crucial when it comes to Lifetime ISAs. Here’s what you need to know about how they interact with tax rules in the UK:
The money in a LISA is free of tax. One of the biggest perks of a LISA is that the money you save grows tax-free. That means no Income Tax on interest, and no Capital Gains Tax on investment growth. Eligible withdrawals — such as for buying your first home or after the age of 60 — are also completely tax-free. This can make a noticeable difference over the years, especially if you're investing long-term.
Your Lifetime ISA limit in a year is £4,000. You can contribute up to £4,000 each tax year to your LISA, and the government will add a 25% bonus — up to £1,000 annually. However, this £4,000 counts towards your overall annual ISA allowance, which is £20,000 for the 2023 to 2024 tax year. Personally, I make it a habit to max out my LISA first, before considering other ISA types — the bonus is just too good to pass up, especially as a first-time homebuyer trying to make every pound count.
After you die, your LISA loses its tax-wrapper status and Inheritance Tax will apply to it. Once you pass away, the LISA funds become part of your estate and may be subject to Inheritance Tax if your total estate exceeds the threshold. However, withdrawals by your beneficiaries won’t be penalised. It’s a sobering detail, but important for long-term planning — especially if you're thinking of your LISA as part of your retirement savings.
Additional permitted subscription. If you pass away, your spouse or civil partner can make an additional permitted subscription (APS) up to the value of your LISA, including any unpaid government bonuses. This ensures that the tax advantages aren’t entirely lost and can help your partner continue building their savings. A close friend of mine recently went through this process, and though it was a difficult time emotionally, it brought peace of mind knowing the savings weren’t just frozen or lost.
You don’t get tax relief on LISAs. Unlike pensions, LISAs don’t offer tax relief on contributions. For example, if you’re a higher-rate taxpayer, you could be getting up to 45% tax relief on pension contributions — something that doesn’t apply here. However, LISAs still have their own advantages: flexibility, accessibility before retirement age (for buying a home), and of course, the generous 25% bonus. I personally balance both a LISA and a pension, since each has strengths depending on your life goals and timeline.
How Much Can You Save With A Lifetime ISA?
In the best case scenario, you would open your LISA at 18 and pay in the maximum amount of £4,000 until you’re 50. Congratulations!
You worked hard for 32 years and paid the maximum amount, so now you have 32 x £4,000 or £128,000 in your savings account.
Moreover, you have an additional £32,000 as government bonuses. That brings the total to £160,000 and that’s not accounting for interest or returns on investment. Not bad!
Do lifetime ISAs earn interest?
How do you get your lifetime ISA bonus?
What is automatic LISA reinvestment?
Early Withdrawals and Other Lifetime ISA Risks
You can easily withdraw money from your LISA if you’re above 60 or buying your first home. However, early withdrawals pertaining to any other reasons come with a penalty which is 25%.
This means that if you withdraw the amount early, then you would be getting 25% less of your total contributions.
Some of the other risks associated with LISA are:
You may not be tax-exempted if you withdraw money due to other reasons.
Transferring your LISA to another ISA may make you lose your bonus.
Can You Have More Than One Lifetime ISA?
Opening more than one Lifetime ISA over your entire life is possible, but you can open and contribute to only one account every tax year. Whenever you apply for a new Lifetime ISA, you always need to fulfil the eligibility conditions.
Another point to be noted here is that individuals can open lifetime ISAs but they cannot be opened jointly. Buying a property in collaboration with another first-time buyer requires 2 different LISAs after fulfilling certain requirements.
Common Charges of Lifetime ISAs
While Cash Lifetime ISAs typically come with fewer — and often no — fees, Stocks and Shares Lifetime ISAs generally include several types of charges to cover the cost of managing your investments. Understanding these fees is crucial before opening an account, as they can significantly impact your long-term gains.
Platform fees: Cash LISAs usually don’t have any platform fees, making them attractive for low-maintenance savers. However, Stocks and Shares LISAs often come with platform fees ranging between 0.2% and 0.75%, either charged annually or monthly. Some providers may cap these fees once your portfolio reaches a certain size. In my own case, I started with a provider charging 0.45% annually. While that seemed reasonable at first, I later realised that over time, this small percentage made a noticeable dent in my returns — especially compared to another provider with a 0.25% capped fee.
Trading fees: These are charges you pay when buying or selling funds, shares, or other investment products such as ETFs. Depending on the platform, trading or dealing fees typically range from £1 to over £10 per trade. Some platforms offer bundled deals or discounts if you trade frequently within a specific timeframe. Personally, I found this cost creeping up when I started experimenting more actively with my investments. I ended up switching to a platform that offered commission-free trades on certain ETFs, which helped me stay within budget while still being hands-on with my portfolio.
Foreign exchange charges: If your investing platform allows you to buy assets in foreign currencies — such as US stocks — you may be charged a foreign exchange fee, which is usually up to 1% of the transaction value. This fee applies every time you exchange GBP into another currency (or vice versa), so it’s important to factor it into your investment strategy.
Fund management fees: These are fees paid to professionals managing your investments. Actively managed funds tend to have higher fees compared to passive index funds. The cost typically depends on the fund’s complexity and the level of involvement by fund managers. When I started out, I was drawn to actively managed funds, thinking they would deliver better performance. But over time, I realised the higher fees didn’t always translate into better returns — and I gradually shifted towards passive funds with lower ongoing charges.
Market spread fees: The market spread refers to the difference between the price at which you can buy and sell a financial asset. Most providers incorporate a spread fee of around 0.07%, which is applied automatically when you make a trade. It’s a hidden cost that can add up over time, particularly if you're actively buying and selling.
Compare Cash LISAs
Moneybox | Paragon | Beehive | |
---|---|---|---|
Platform Fees | 0.45% per year | NA | NA |
Interest Rate | 3.5% AER (variable), (2.75% base rate (variable) | 2.5% AER (variable) | 3.0% AER (variable) |
Minimum Starting Investment | £1 | £1 | £1 |
Compare Stocks and Shares LISAs
AJ Bell | Nutmeg | Hargreaves Lansdown | |
---|---|---|---|
Platform Fees | 0.25% of the value of shares or £3.50 per month maximum | Between 0.25% and 0.75% | Between 0.45% and 0% |
Dealing Fees | £1.50 for funds, £9.95 for shares | Fully Managed 0.21%, Smart Alpha 0.36%, Socially Responsible 0.31%, Fixed Allocation 0.20% | Between £11.95 and£5.95, depending on volume |
Interest on Uninvested Cash | Between 0.15% and 1.65% AER | Not applicable | Between 1.26% and2.27% |
Minimum Investment | £25 a month or £500 lump sum | £100 | £100 single payment or £25 per month |
Is a Lifetime ISA Worth It?
With their attractive government bonuses, LISAs are a great choice for first-time home buyers who are looking to buy residential homes up to £450,000. However, while they are a great addition to your retirement savings, they cannot replace a pension in most cases.
FAQ
Who qualifies for a LISA?
How much can I deposit into a lifetime ISA?
Is LISA better than pension?
What is the main disadvantage of a Lifetime ISA?
Conclusion
Selecting the ideal Lifetime ISA (LISA) requires careful consideration of your financial goals, risk appetite, and investment style. If you are open to risk and focused on long-term growth, a Stocks and Shares LISA can offer greater potential returns by investing in the stock market. For those seeking a more secure, low-risk option, a Cash LISA is a preferable choice, providing a consistent interest rate and guaranteed returns.
Among the available choices, AJ Bell emerges as a top contender. It provides affordable dealing with capped platform fees, a broad array of investment options, and an intuitive platform. With access to over 2,000 funds and a variety of market choices, AJ Bell is suitable for both beginner and seasoned investors. Its competitive fees, especially in comparison to platforms like Hargreaves Lansdown, make it an appealing option for long-term savers aiming to maximise their returns without incurring high costs. As such, AJ Bell is highly recommended for those seeking a balanced investment approach within a Stocks and Shares LISA.