A Lifetime ISA (LISA) is a new way for younger investors to save for their first home or retirement. For every £4 you put in, the government adds £1 – up to a maximum bonus of £1,000 per year.
Lifetime ISAs
- Protection Scheme: FSCS
- Fund Choice: Over 2,000 Funds, Shares and ETF's
- Invest From: £25 per month
- Trade From (frequent trader rate): £4.95
- Trade From (standard trader rate): £9.95
Why we like it: Start from £25 per month and save up to £4,000 per year. Wide choice of stock market linked investments, or utilise online investment ideas. Can be retained in cash. Simple annual management fee of 0.25%. Deal from £1.50 and never pay more than £9.95 per online deal. AJ Bell are regulated by the Financial Conduct Authority and are covered by the Financial Services Compensation Scheme. Capital at risk. AJ Bell Youinvest doesn’t offer advice.
- Select your own investments, access fund options, or choose investment ideas where specialists do the hard work for you
- Access your account online 24/7 and deal on the go with the mobile app
- UK-based customer services team, webchat and email support
- Open with lump sum, regular contributions or transfers from existing ISA's
- Contribute up to £4,000 per year until you’re 50
- Get a 25% government bonus: For every £4 you pay in you receive a £1 bonus
- Use your savings to buy your first home up to a value of £450,000, or use as retirement income from aged 60
- You can contribute to both a stocks and shares Lifetime ISA and a ‘regular’ stocks and shares ISA in the same tax year
- Must be UK resident aged 18-39 to open
- If you need to access your money for any other reason, you’ll pay a 20% penalty (25% from 6 April 2021)
- Annual account charge of 0.25%
- Dealing and other charges will depend on the investments you choose and will apply in addition to an annual account charge
- Tax rules can change and their benefits depend on your circumstances. Lifetime ISA allowance forms part of the overall £20,000 annual ISA allowance
- Tax and Lifetime ISA rules apply
- If you choose to save in a LISA instead of enrolling in, or contributing to, your workplace pension you will miss out on the benefit of your employer’s contributions to that scheme and your current and future entitlement to means tested benefits may be affected