Compare our best Lifetime ISA rates

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.

  • Compare our top providers
  • Pick the best type of account for you
  • Our service is simple, reliable and offered at no charge

Compare lifetime ISAs from leading providers

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.

aj-bell-lifetime-isa
BMO-lifetime-isa
Hargreaves Landsdown - pensions
nutmeg-lifetime-isa

How to compare lifetime ISAs

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.

Lifetime ISA deals

Investment ISAs put your capital at risk, and you may get back less than you originally invested.

Young family

What is a Lifetime ISA?

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.

Who can open a Lifetime ISA?

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

Can you have a joint Lifetime ISA?

No, you can only open a Lifetime ISA in your own name.

How do Lifetime ISAs work

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.

What happens if you withdraw early from your LISA?

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.

How does the LISA bonus work?

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.

How do I use my Lifetime ISA to buy a house?

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

How do I use my Lifetime ISA for retirement?

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.

Florence Codjoequotation mark
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

What happens if you withdraw early from your LISA?

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.

Can you save into a different ISA during the same tax year?

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.

Which is the best Lifetime ISA

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.

What if you have a Help to Buy ISA?

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

Lifetime ISA FAQs

About our Lifetime ISAs comparison

Explore investment ISA guides

See more guides

Lady making notes with laptop

What is an ISA? How do ISAs work? | Savings Accounts

An ISA lets you earn interest without paying any income tax, but you are limited to how much you can put in. Here is everything you need to know to get started.

Read more on what an ISA is and how they work
Woman making notes at a table with a coffee and laptop

7 questions you must ask before you invest

The thrills and spills of the stock market can be exciting and lucrative, but sometimes it can be hard to know where to start with investments. Ask yourself these 7 questions to work out how and where to invest your money.

Read more about questions to ask before investing
business man at home on laptop

How do you invest in OEICs?

OEICs offer a way to invest your money in a wide range of assets without the hassle of managing them yourself, here is how to get started.

Find out more about how to invest in OEICs

Why compare stocks and shares ISAs with money.co.uk?

Comparing investment ISA accounts could save you money. Our multiple award-winning comparison service makes sure you get the lowest fees and rates possible based on your individual circumstances. Our aim is to provide you with the most up-to-date information, as well as useful tools and calculators so to help you make life's most important decisions and take control of your money.

Proud to be award winning

We have always aimed to provide the best possible services to bridge the gap between our users and our clients. Over the years, we have been thrilled to be recognised by various prestigious bodies and organisations for those efforts.

stevie award
WMA 2021 Logo-768x632
nba logo
logo dma
ecommerce awards

Last updated: 16 March, 2022