A Lifetime ISA, also known as a LISA, is a longer-term tax-free savings account that gives you a government bonus of 25% of the money you put in, up to a maximum of £1,000 a year. This bonus will be paid in monthly. As with other ISAs, you won’t pay tax on any interest, income or capital gains from cash or investments held within a Lifetime ISA, making it an attractive long term way of saving. Lifetime ISAs were created to help people save for their first home or retirement.
Please note companies are ranked in no particular order and data comes from each company’s website and was last updated in March 2023.
| COMPANY | ANNUAL ADMIN FEE |
|---|---|
| AJ Bell | 0.25% |
| Equiniti | 0.20% |
| Foresters Financial | 1.60% |
| Foresters Friendly Society | 2% |
| Newcastle Building Society | not stated |
| Nottingham Building Society | not stated |
| Nutmeg | 0.75% |
Topics
1. AJ Bell
- With assets totalling £54.3 billion, AJ Bell is one of the UK’s largest investment platforms
- Stocks and Shares ISAs, Lifetime ISAs and Junior ISA products available
- A wide range of over 2,000 investment opportunities
- Specialist help and investment advice offered
- Low fees and costs – deal from £1.50 and never pay more than £9.95 per online deal
- Easy to use online account available 24/7
- Free investment tools, videos and research
- Customers with more than £4,000 in their account get free access to Shares magazine
- Award-winning: Sunday Times 100 Best Companies, Money Marketing Awards and Moneyfacts Annual Star Ratings 2020
- Online free signup
Website: AJ Bell
Read the full AJ Bell review.
2. Equiniti Financial Services
- A FTSE 250 listed company with a large global customer base
- Stocks and Shares ISAs and Lifetime ISA products only
- Fee holiday for the first two quarters
- Best Execution Price Promise
- The lowest custody fee in the market of just 0.2% per annum
- Invest in companies from around the globe and in funds which offer a basket of ready-made investments
- Fast easy online setup
Website: EQi
Read the full EQi review.
3. Foresters Financial
- Based in Bromley, Foresters Financial was established in 1874 to help families achieve long-term financial health and security
- Stocks and Share ISAs and Lifetime ISA products available only
- Junior ISAs also offered
- Manage your savings online through MyPlans, with 24/7 access to your plan details, value, fund performance, documents and information
- Access your member benefits through MyForesters, where you are able to apply for grants, find activities you want to attend and access LawAssure.
- Accounts are quick and easy to open in minutes
- A clear, easy to understand website
- Helpful online guides and tax calculators
- Fast easy online setup
Website: Foresters Financial
Read the full Foresters Financial review.
4. Foresters Friendly Society
- A long-established, reputable organisation since 1834
- Profits are distributed to members not shareholders
- Stocks and Share ISAs and Lifetime ISA products available only
- Free M&S Gift Card for opening a new account
- Access to Foresters Extras membership benefits, including discretionary grants
- Plans are covered by the Financial Services Compensation Scheme for extra protection
- A clear, informative website
- Fast easy online setup
- Good customer reviews and recommendations
Website: Foresters Friendly Society
Read the full Foresters Friendly Society review.
5. Newcastle Building Society
- Founded in 1980, The Newcastle Building Society is the biggest building society in the North East
- A large range of competitive ISA offerings, including Lifetime ISAs
- Junior versions of the ISAs also available
- Clear, easy-to-understand information on website
- Supports local charities with financial product contributions
- Some positive reviews from happy customers
- Quick easy online signup
Website: Newcastle Building Society
Read the full Newcastle Building Society review.
6. The Nottingham
- Founded in 1849, The Nottingham Building Society is a mutual society
- It provides mortgages, savings, estate agency services, home insurance and financial planning services
- Lifetime ISA, Notice ISA and Junior ISA products available
- Quick easy online signup
- Clear, easy-to-understand information on website
- A good level of product detail offered
- Free advice from trusted mortgage brokers
Website: The Nottingham
Read the full The Nottingham review.
7. Nutmeg
- The first, and now the largest, digital wealth manager in the UK
- Stocks and Shares ISAs, Junior ISAs and Lifetime ISA products available
- A wide range of risk levels and investment portfolios
- Excellent customer reviews
- Simple, jargon-free services and advice
- Quick easy online signup
- Transparent 24/7 access to your account
- Social responsibility focus
- Accounts are proactively managed by an experienced investment team
- Regulated by the Financial Conduct Authority and protected by the Financial Services Compensation Scheme
- Award-winning: Best Stocks & Shares ISA Provider 2019
Website: Nutmeg
Read the full Nutmeg review
What is a Lifetime ISA?
A Lifetime ISA, also known as a LISA, is a longer-term tax-free savings account that gives you a government bonus of 25% of the money you put in, up to a maximum of £1,000 a year. This bonus will be paid in monthly. So, for example, if you pay £1,000 into your Lifetime ISA, the Government will add an extra £250. This would leave you with £1,250 at the end of the tax year. As with other ISAs, you won’t pay tax on any interest, income or capital gains from cash or investments held within a Lifetime ISA, making it an attractive long term way of saving.
Lifetime ISAs were created to help people save for their first home or retirement. To open a Lifetime ISA you need to be aged between 18 and 40, and a UK resident or a Crown servant. You can continue paying into a Lifetime ISA until you are 50.
How much money can I put into a Lifetime ISA?
The maximum you can put into a Lifetime ISA is £4,000 each tax year. You can do this from the age of 18 up to the age of 50. The government will add a 25% bonus to your savings each year, up to a maximum of £1,000 per year. So essentially, for every £4 you save, the government will add £1. The Lifetime ISA limit of £4,000 will count towards your annual ISA limit.
How many Lifetime ISAs can I have?
You are allowed to hold multiple Lifetime ISAs at one time. However, you can only open and pay into one Lifetime ISA in each tax year.