Best Lifetime Isa suppliers: How Lisas work and prime platforms

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A Lifetime Isa – or Lisa – lets you save up to £4,000 a year into the account. The Government then tops up your contributions by 25 per cent, giving your savings a very generous boost.

The catch? You can only access your savings when buying your first home, or when you reach 60.

You can potentially bag a total of £32,000 from the Government if you max out your contributions each year between the age of 18 and 50, the age at which you stop earning the Lifetime Isa bonus.

In general, this makes Lifetime Isas a great deal for first-time buyers who know they’ll be purchasing a home in the next few years.

But the account has also come under fire, because the property you buy must cost less than £450,000. This level has stayed the same since the Lisa’s introduction in 2017, despite property prices increasing over that time.

Here we look at how Lisas work, what types of products are available, and their benefits and pitfalls. We also examine the best Lifetime Isa providers on the market, giving you options for both a cash Lisa and a stocks and shares Lisa.

Read more: The best stocks and shares Isas 

Best Lifetime Isa: Our pick of the top providers

How we review Lifetime Isa providers

Our Lifetime Isa round-up is informed by This is Money’s extensive experience of hunting for the best savings rates and testing and reviewing different investment accounts. 

For cash Lifetime Isas, we consider the interest rate primarily. We examine the available boost, the underlying rate, the minimum deposit, and how easy it is to transfer your money. 

For stocks and shares Lifetime Isas, we look at account fees, whether you’ll earn any interest on uninvested cash, and how easy it is for beginners to get started. Keep in mind that because investments rise and fall in value, experts generally suggest investing for a minimum of five years.

Why trust us

Sam is Money and Consumer Guides Writer at This is Money. He has more than 10 years’ experience covering financial topics and has worked as a writer at organisations including NerdWallet, the Financial Ombudsman Service and Simply Business. He’s skilled at uncovering the best money deals and breaking down complex topics for readers.

What is a Lifetime Isa? 

A Lifetime Isa is a type of Individual Savings Account that’s designed to help younger people save for their first home, or for retirement.

The £4,000 you can save each year in a Lisa forms part of your overall £20,000 Isa allowance.

As with other Isas, both cash and investment Lifetime Isas are available.

The best feature of the Lisa is the 25 per cent Government bonus on contributions. However, the eligibility criteria and rules about accessing your money are stricter than other Isas.

Are Lifetime Isas set to change?

At the Autumn Budget in November 2025, the government announced its intention to introduce a new Isa for first-time buyers that will replace the Lifetime Isa.

This is unlikely to happen any soon, with a consultation due in 2026. You can continue to open and pay into an existing Lifetime Isa. 

> Read more: Should I keep paying into my Lifetime Isa now that they could be scrapped?

Lifetime Isa eligibility 

Everybody aged 18-39 can open a Lifetime Isa. 

This includes those who already own a home and are saving into a pension, although you can’t use the money for a house purchase unless you’re a first-time buyer. 

You can pay into a Lisa until you’re 50, meaning savers can potentially earn a total of £32,000 from the Government by stashing away £4,000 a year from the age of 18.

Your account stays open after you turn 50, and your savings can continue to earn interest or achieve investment returns, but you can’t make more contributions. 

If you’re saving for retirement in a Lisa, you can only withdraw money once you reach 60.  

If you’re buying a home with someone else who meets the criteria, you can both use Lifetime Isas for the purchase – turbocharging your savings with more Government bonus.

Are there any Lifetime Isa early withdrawal penalties? 

You can only use the money when buying a first home worth up to £450,000, or for retirement when you reach 60.

If you need to withdraw for other reasons, you’re hit with a stiff 25 per cent penalty, which affects your own contributions and not just the Government bonus.

There’s no withdrawal penalty if you’re terminally ill with less than 12 months to live.

What else should you know about Lifetime Isas? 

Both cash Lifetime Isas and stocks and shares Lifetime Isas are available.

You can hold multiple Lifetime Isas, but you can’t deposit money into more than one in each tax year.

The £4,000 maximum you can pay into a Lifetime Isa counts towards your annual £20,000 Isa allowance.

The Lifetime Isa has effectively replaced the Help to Buy Isa, which was a previous scheme that also paid out a Government bonus and is closed to new savers. If you have both a Help to Buy Isa and a Lifetime Isa, you can only use the bonus from one to buy a home.

What are the rules when using a Lisa to buy a home?

Lifetime Isas are best for first-time buyers who are definitely going to buy a property in the next few years.

If you’re considering opening a Lifetime Isa for this reason, you should be aware of the rules and eligibility criteria.

For instance, you must be a first-time buyer. You can also buy with another first-time buyer and both use separate Lisa savings.

It’s possible to buy with someone who isn’t a first-time buyer and use your Lisa, although they can’t use their own Lisa if they were to have one.

The property must cost less than £450,000 and the Lisa needs to be open for at least 12 months before you can use it for the purchase. If you know you want to buy a first home at some point but don’t yet have a Lifetime Isa, a popular tip is to open one with just £1 as soon as you can. You won’t then have to wait for 12 months before you can withdraw the money.

You can’t have previously owned a property, in the UK or anywhere else. It’s worth noting that the property you purchase must also be in the UK.

The scheme isn’t for those purchasing a buy-to-let or holiday home – you must be buying a home you plan to live in.

Finally, you have to be buying the property with a mortgage.

How to access the money for a house deposit

When you eventually buy a property, you can’t just withdraw the funds, because you’ll be hit with a penalty.

Instead, the solicitor handling your purchase should deal with withdrawing the money. You’ll need to tell them you’re using a Lisa to buy the property.

You can use the money towards the deposit when you exchange contracts prior to completion, although there can’t be a delay of more than 90 days.

If the sale falls through, your solicitor will be able to put the money and bonus back into your Lisa – though it must be the same amount.

Best Lifetime Isas: what cash providers can you choose from? 

Lifetime Isas can boost savers’ pots, but in practice there aren’t many providers on the market.

This is particularly true of cash Lifetime Isas. Larger banks generally don’t offer them, meaning cash savers can choose from a small group of less well-known providers.

These include Moneybox, Paragon Bank, Plum* and Tembo. The best cash Lifetime Isa provider by rate is currently Moneybox, which is offering savers 4 per cent interest – although this rate plummets by 1.2 per cent after 12 months. You could look to transfer provider after the bonus rate ends.

App-based Tembo currently has the best underlying rate of 3.8 per cent, which is great if you don’t want to faff around with bonus rates. However the positive with bonus rates are they’re usually fixed, so it should mean that you beat the base rate for at least 12 months.

A dearth of products could pose problems for first-time buyers with a shorter time horizon. Investing is for the long term – the usual rule of thumb is a minimum of five years – so an investment Lifetime Isa probably isn’t the right choice if you want to buy a home sooner than that.

Best stocks and shares Lifetime Isa providers: a pick of the top platforms

For those who won’t need access to the money for at least five years, investing may be a good option. Investments rise and fall in value, and there’s a risk you might get back less that you invest. But over the long term, investing gives you the opportunity of beating the interest earned on cash savings.    

Those interested in a stocks and shares Lifetime Isa can choose from more recognisable names than cash savers.

Providers include AJ Bell*, Hargreaves Lansdown*, Moneybox and Nutmeg. Read more in our guide to the best investment platforms.

For do-it-yourself investors:

AJ Bell

You can open an AJ Bell Lifetime Isa* with a minimum of £250 or by setting up a monthly direct debit of at least £25. You can also transfer in from another Lisa provider.

AJ Bell charges 0.25 percent annually on your investments. For shares, investment trusts, Exchange Traded Funds (ETFs), gilts and bonds, this charge is capped at £3.50 a month.

In terms of trading fees, AJ Bell charges £1.50 for fund dealing and £5 for shares dealing.

If you’d prefer to have your investments managed, you can choose one of AJ Bell’s own ready-made portfolios. Just check the underlying ongoing fees for these funds.

Hargreaves Lansdown

You can open a Hargreaves Lansdown Lifetime Isa* with a minimum lump sum investment of £100, by setting up a minimum monthly payment of £25, or by transferring.

Investors pay an annual fee of 0.25 per cent on the first £1million held in funds, 0.10 per cent on the value between £1million and £2million and nothing on the value above that.

There’s no dealing charge for buying or selling funds.

For shares, investment trusts, ETFs, gilts and bonds, the 0.25 per cent charge is capped at £45 per year. There are dealing charges for these investments, starting at £11.95 a deal if you make less than 10 deals a month.

You can invest in the shares, funds or trusts you like. If you prefer a more hands-off approach, you can pick one of Hargreaves Lansdown’s ready-made Isa portfolios, tailored for different investment needs.

Be sure to check any ongoing charges within the investments themselves.

For hands-off investors:

AJ Bell Dodl

Dodl is AJ Bell’s app for beginner investors. You can open an Dodl Lifetime Isa account* with £100 or a £25 monthly direct debit.

The range of investments is more limited than its full investment platform, but it still gives you more choice than other hands-off platforms. 

You can go for one of AJ Bell’s seven ready-made portfolios, a selection of ETFs that track a market sector or investment theme, or pick from 80 shares available through the app.

Dodl’s account charge is low at 0.15 per cent, with a minimum of £1 a month. Be sure to check charges for the underlying investments – the majority of AJ Bell’s own funds have ongoing charges of 0.31 per cent.

Dodl offers a very competitive 4.06 per cent interest on cash held in your account.

Moneybox

Moneybox aims its Lifetime Isa at those saving a deposit for their first home, rather than targeting people investing for retirement.

When you sign up, Moneybox offers you a choice of three risk-rated portfolios as ‘starting options’ – cautious, balanced and adventurous. However if you’re more experienced, you can build a customised portfolio with a selection of ETFs.

Moneybox gives you exposure to cash, global equities and global property equities through these funds. You can start investing with just £1.

It charges £1 a month to cover transaction fees and also has a platform fee of 0.45 per cent. Investors pay underlying fees for the investments on top of this.

JP Morgan Personal Investing 

JP Morgan has retired the Nutmeg brand and launched a new investment platform, but the details of its Lifetime Isa remain the same as Nutmeg’s.

JP Morgan’s Lifetime Isa has a minimum lump sum requirement of £100.

You choose an investment style and risk level and then JP Morgan manages your portfolio for you.

Make sure you check the fees. As a service that manages your investments, fees are relatively high. For its actively managed investment styles, JP Morgan charges 0.75 per cent annually on up to £100,000 of investments and 0.35 per cent on the portion above that.

Keep in mind there are also underlying fund costs ranging from 0.16 per cent to 0.39 per cent.

OneFamily

You can open OneFamily’s Lifetime Isa* with a minimum £250 lump sum investment or £25 a month direct debit.

There are three investment styles to choose from – cautious, balanced and adventurous, depending on the level of risk you’re happy with.

The annual management charge for these funds is high at 1.1 per cent. However, this is the only fee that OneFamily charges, making it more straightforward to understand – there are no fund-level fees on top.

Is a Lifetime Isa worth it?

Lifetime Isas are usually worth it for first-time buyers who know they’ll definitely be purchasing a property in the next few years, and that the property will cost less than £450,000. 

This cohort stands to benefit the most from using the account, because the generous 25 per cent Government bonus can supercharge their savings, helping them buy a home quicker.

It’s a less useful account for saving for retirement. You must stop paying into it at 50, but you can’t access it until you’re 60 – so you’ll miss out on 10 years’ worth of saving.

If saving into a Lisa means opting out of a workplace pension or missing out on employer contributions, the first port of call should be auto-enrolling to the pension and maximising employer contributions.

However, a Lisa could still be worth it when used in combination with other accounts. And if you’re part of a group that won’t get employer contributions to a pension, such as the self-employed, the Government bonus is one way to receive a similar top-up.

> The best mortgage rates for first-time buyers 

How to decide whether a Lifetime Isa is worth it for you

There are many factors to consider when deciding whether to open a Lifetime Isa – and the drawbacks can outweigh the advantages for some people.

Ask yourself the following questions when considering a Lifetime Isa:

Do you think you’ll need to withdraw money in an emergency?

Lifetime Isas are not a good choice if you need easy access to your money. You’ll lose a quarter of your savings when withdrawing, including from the bonus and any interest or investment growth you’ve built up.

That’s a hefty loss, so you need to be sure you can lock up your money until you buy a home or retire.

Do you know how much you’ll need to save for a home deposit?

If you want to save for a home using a Lifetime Isa, you should know what sort of property value you’ll be considering.

Firstly, you can only buy a property worth £450,000 or less, which is potentially an issue in pricier locations such as the capital and for those who need a larger than usual first home, for example if they have a family. 

Secondly, it helps you plan how much to save in a Lifetime Isa. Any excess funds beyond your deposit will remain in the account, which you won’t be able to access until you’re 60 without penalty.

Are you maximising employer contributions into a workplace pension?

After you’ve bought a home, the Lifetime Isa turns into an inferior retirement product when compared with saving in a workplace pension.

Auto-enrolment rules mean employers have to pay into your pension. Some employers go beyond the minimum they must contribute, matching your own contributions up to a certain amount.

If saving in a Lifetime Isa means you’re not squeezing the maximum contributions possible out of your employer, you’re forgoing free money.

The Lifetime Isa is only a decent retirement savings vehicle for the self-employed, who don’t receive employer contributions towards their pension.

Read more: The best self-invested personal pension (Sipp) providers 

Are you planning to use a Lifetime Isa within the next five years and are you ready to invest?

If you’re planning to buy a home within five years, it makes sense to open a cash Lifetime Isa and grab any bonuses during that period. Any period shorter than this is less than the timescale financial advisers traditionally recommend for investing over saving.

But stick with cash for any longer than that and you’re missing the opportunity for better returns.

The hard work and risks of investing are practically invisible to people saving into workplace pensions. The vast majority are in a default fund, and don’t have to think much about how their investments are managed.

If you intend to hold an investment Lifetime Isa, you’ll have to be more proactive and knowledgeable. Even when choosing a do-it-for-you platform such as Nutmeg, you should research its different investment approaches and think about how much risk you want to take.

Many financial experts think one of the biggest risks of the Lifetime Isa is that young people will simply open a cash version and stick with it, potentially losing thousands of pounds of investment returns over the decades.

That’s on top of missing employer contributions into a pension, if they hang onto their Lifetime Isa as a retirement product after buying a home.

Might you need to fall back on benefits at any point in your life?

Lifetime Isa savings will be taken into account if you ever need to claim benefits, but pension savings are not included in the assessment.

If you are in a weak financial situation or in the kind of precarious employment where you might have to rely on state benefits at some time in the future, any savings you build up will be protected in a pension pot.

What income tax rate are you on?

The Government pays tax relief on contributions to pension pots, in line with the principle that we all save for retirement out of untaxed income.

It does this based on income tax rates of 20 per cent, 40 per cent or 45 per cent. So if you earn too little to pay income tax or are on the basic rate of 20 per cent, the Lifetime Isa bonus is a fair deal, especially if your primary goal is to buy a home.

But if you are on the 40 per cent or 45 per cent rate, you will get more money from the Government if you stick with saving into a pension.

Your Lifetime Isa fund will be tax-free when you eventually withdraw it, but your payments into the pot come from taxed income. The Lifetime Isa bonus evens the field for basic rate taxpayers, but not for those on the higher rates.

With pensions, higher rate taxpayers get an extra boost at the outset from more tax relief – increasing the size of the initial fund which then benefits even more from investment compound growth.

Pension withdrawals will be taxed as income in retirement, but many people end up on a lower rate in retirement than when they were earning a salary, so the overall system works in their favour.