Compare lifetime ISA providers that let you pay in up to £4,000 a year towards your first home or retirement and get a 25% tax free bonus on your savings.
Looking through a range of options gives you more chance of securing a great deal. You'll only find results from genuine companies. Our data experts check each company before we add them to our comparisons.
1
Run a LISA comparison
If you're happy to take on more risk with the possibility of a greater return then a LISA might make your money go further. Work out how much you'd be happy to put in to open your account and find the highest return lifetime ISA by comparing a number of companies.
2
Compare your options
While a lifetime ISA deal might catch your eye it's important to check the terms as these can vary widely across suppliers. Check any conditions attached to the the account such as the sum required to open the account.
3
Apply for the LISA
You may be able to get a higher interest lifetime ISA by applying online and some providers only ever operate digitally, so to make sure you find the best lifetime ISA deals comparing quotes on the internet is a must. Once you've decided on the provider you want, simply apply.
Investment ISAs put your capital at risk, and you may get back less than you originally invested.
| Minimum Monthly Investment | £25 |
| Minimum Lump Sum Stocks & Shares ISA Investment | £500 |
| Minimum Monthly Investment | £25 |
| Minimum Lump Sum Stocks & Shares ISA Investment | £100 |
| Minimum Monthly Investment | |
| Minimum Lump Sum Stocks & Shares ISA Investment | £100 |
A Lifetime Independent Savings Account (LISA) can help you build up a deposit to buy your first property, or to fund your retirement, by giving you a 25% tax free bonus each year on up to £4,000.
You can choose from two types of LISA:
Cash: You qualify for the bonus and earn interest based on what the savings provider you choose offers.
Stocks and shares: You are eligible for the bonus, but your capital will be at risk due to the volatility of the stock market.
Speak to an independent financial adviser if you are unsure if a stocks and shares Lifetime ISA is right for you.
To qualify for a LISA you have to:
Be at least 18 years old
Be younger than 40 years old
Have a National Insurance number
No, you can only open a Lifetime ISA in your own name.
Whether you choose a stocks and shares Lifetime ISA or a cash LISA, the way they both work means you can:
Pay in up to £4,000 a year: You will earn a 25% bonus on anything you add during the tax year, up to a maximum bonus of £1,000.
Build up a house deposit: You can withdraw the money from your Lifetime ISA without any charges if you use it towards your first mortgage deposit.
Build up a retirement fund: The Lifetime ISA pays a 25% bonus each year until you are 50. However, you have to wait until you are 60 to make a withdrawal.
You can withdraw your money from a Lifetime ISA for other reasons than for a property deposit or for retirement, but you will be charged.
You will normally face a 25% deduction on anything you withdraw, which could end up costing you more than you have put into the account.
For example, if you have £4,000 in your Lifetime ISA, and get your bonus at the end of the tax year, you then have £5,000. If you then try to withdraw £5,000, you will face a 25% charge of £1,250, meaning you only get £3,750 in cash.
The bonus will be calculated and paid monthly, so you will earn 25% of the amount you pay in over a tax year up to £4,000.
If you pay in £4,000 during the first tax year, your balance would increase to £5,000 with the 25% bonus, before interest is added. If you added another £4,000 the next year, you would get another £1,000 bonus making your total savings £10,000, plus interest.
You stop earning the bonus on your savings once you reach 50 years old, but you can continue to save and earn interest in your ISA.
You can use your LISA savings to help you buy your first home if all the following apply:
the property costs £450,000 or less
you buy the property at least 12 months after you make your first payment into the Lifetime ISA
you use a conveyancer or solicitor to act for you in the purchase - the ISA provider will pay the funds directly to them
you’re buying with a mortgage
You can use your LISA savings for retirement when you’re 60 or over.
If you die your Lifetime ISA ends on the date of your death. There’s no charge to withdraw the funds or assets from your account.
A Lifetime ISA is one of a number of ways to save for later life. Other options include private pensions.
Every little helps. If you’re saving to buy your first home, a Lifetime ISA bonus will be a great boost to your savings.”Florence Codjoe, Personal Finance Editor
You can withdraw your money from a Lifetime ISA for other reasons than for a property deposit or for retirement, but you will be charged.
You will normally face a 25% deduction on anything you withdraw, which could end up costing you more than you have put into the account.
For example, if you have £4,000 in your Lifetime ISA, and get your bonus at the end of the tax year, you then have £5,000. If you then try to withdraw £5,000, you will face a 25% charge of £1,250, meaning you only get £3,750 in cash.
A reduced withdrawal charge of 20% was temporarily introduced from 6 March 2020 to 5 April 2021. If you were charged the higher rate of 25%, the difference will be paid back into your Lifetime ISA. Contact your Lifetime ISA provider if this does not happen.
Yes, you can save into a Lifetime ISA as well as a Cash ISA, Stocks and Shares ISA and Innovative Finance ISA during the same tax year.
Any money you save into a Lifetime ISA will count towards your annual ISA allowance, which is £20,000 in the 2021/22 tax year.
In most cases the best Lifetime ISA is one that gives you the best return with the features that you need. This is why there can be no best Lifetime ISA for everyone, because every individual has different financial goals and needs. What's best for you may not be the best for others.
In order to get the best deals, compare Lifetime ISA providers, so that you can make an informed decision by knowing what's available in the market.
You can do one of three things:
Transfer the money into a Lifetime ISA and continue to save
Use your Help to Buy ISA for a property deposit and save into a Lifetime ISA for your retirement
Use your LISA with the government bonus and withdraw the money from your Help to Buy ISA to go towards buying your first home
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Last updated: 16 March, 2022
