Of the Lifetime Cash ISAs we cover, Tembo currently offers the best interest rates of 4.33%. Please note that rates are variable and may change at short notice. Whilst Cash Lifetime ISAs are great for short-term savings boosts for your first home, if you are using your Lifetime ISA for retirement, you should consider an Investment Lifetime ISA as money invested in the stock market over time has historically outperformed savings accounts.
Best Cash Lifetime ISA Rates
| Name | Logo | Interest Rate | Account Charge | GMG Rating | Customer Reviews | CTA | Feature | Expand |
|---|---|---|---|---|---|---|---|---|
 | Interest Rate 4.33% | Account Charge £0 | GMG Rating | Customer Reviews | See Offer £1 Minimum | Features:
| Tembo Money Lifetime ISA Expert Review Account: Tembo Money Lifetime ISA Description: Tembo has a an app-based savings and investment Lifetime ISA account which gives you a 25% top up bonus from the Government. You can split your money for your first home or retirement between an interest-paying savings account or an ESG fund that tracks the performance of the stock market. The savings accounts don't have any withdrawal penalties, there are no cheeky intro rates and as an added bonus Tembo offer free mortgage advice for all savings account holders, which is a saving of up to £749. Is Tembo Money a good Lifetime ISA account? Tembo Money’s Lifetime ISA is one of the easiest and best-paying Lifetime ISA apps to help save money when buying your first house or investing in retirement. It also comes with the added benefit of being attached to an online mortgage broker that can help you use it to buy your first property. The cost of your Tembo Money Lifetime ISA laid bare… Before Tembo acquired Nude’s Lifetime ISA The Times wrote a very mean article about Nude titled ‘The Savings App that loses you £19 a year‘. The previous year I had interviewed the Nude founder Crawford Taylor and my first thought was “oh come on, that’s a bit harsh”. Yes, it’s true that it costs £24 a year to have a LISA with Nude (plus 0.35%) and if you invested £1,000 instead in the same fund with Hargreaves Lansdown it would only cost you £4.50 (excluding fund charges). But now that Nude is now Tembo Money that £24 fee is now gone, you now pay the 0.25%. But I think it’s worth reminding yourself what you pay for. To be fair, it’s not often you hear Hargreaves Lansdown applauded for their low fees, but in this case, they are cheaper. As it always is to do things yourself. If you want a little help, you have to pay a little bit more. It’s basic supply chain economics. It’s cheaper to buy flatpack furniture from Ikea than have the nice people at John Lewis deliver and build it for you. In fact, if you have the time and inclination and want to do your homework, you can invest in any managed fund, robo-adviser or ETF cheaper by replicating the portfolio elsewhere. The steps are as follows:
Below are the ETFs and their weightings included in Blackrock’s MyMap 5 Select ESG Fund which is what you invest in on Tembo Money. You will need to buy these to replicate the majority of the fund’s portfolio:
Or if you wanted to take it a step further and reduce your ETF fees, you could go to the exchange-traded fund providers website and take a look at the holdings of the underlying fund holdings name & percentage weightings Just taking the first ETF in that list (ISHARES MSCI USA ESG ENHANCE USD A ) the stocks and their percentage weighting it holds are:
You’ll need to buy the correct amount of each of those shares, and then manually rebalance the weighting along with the fund manager. You’ll also need to find an investing app that does not charge commission for holding or buying ETFs. But what if you don’t want to? What if you don’t know the difference between an ETF and an accumulation fund? What if you don’t want all the bells and whistles that come with a full on stock brokerage account? What if you don’t want the temptation to time the market by punting on Tesla shares? What if you just want to take advantage of the Government’s very kind 25% top-up bonus to help get you on the housing ladder? What if you want some in a savings account earning 3% interest with zero risk, and some in the stock market taking on a little bit more risk with the hope of making some money? Or what if you don’t want anything at all in the stock market because you’re worried it’ll crash. This is where apps like Tembo Money come in. A single product for a single goal. Keeping you focussed on getting on the property ladder because as the founder said when I spoke to him:
I try all sorts of investing apps and some make it hard some make it easy. Reverting to our old friend HL, it’s actually a bit of a faff opening an account. But Nude (now Temb) makes it easy, and sort of salami tactics you into going through the process. Initially, by showing you how much quicker you can save for a house deposit with the Nude LISA. Then the process almost propels you along, and with all the educational content on the app geared towards Lifetime ISAs, there is no chance of getting lost in the malaise of all the other investment products available. It’s the sort of thing I wish was around when I was in my 20’s, but back then they barely had mobile phones… Pros
Cons
Overall4.5 | |
 | Interest Rate 4.32% | Account Charge 0.15% | GMG Rating | Customer Reviews | See Offer £1 Minimum | Features:
| Dodl by AJ Bell: Best Stocks & Shares Lifetime ISA 2025 Account: Dodl Lifetime ISA Description: Dodl won Best Lifetime ISA 2025 because they simplify the often complex process of investing with a Lifetime ISA, which is primarily used for retirement savings or purchasing a first home. Dodl makes it easy for people to navigate these specific purposes, offering an accessible solution for new investors. How Risky Is An AJ Bell Dodl Lifetime ISA?
Dodl also won Best Lifetime ISA in the 2024 Good Money Guide awards as it is a great choice for beginners who want a low cost and simple way to take advantage of the government bonus and have easy investment options. Ben Binding from Dodl by AJ Bell said after winning the award: It’s fantastic to win Best Lifetime ISA 2024. Investing benefits everyone—not only do investors gain better returns compared to cash savings, but supporting UK companies also strengthens our economy. There are many people who don’t realize investing is for them, and it’s crucial to raise awareness. The London Stock Exchange aims to reach those individuals, helping them see that investing is a valuable step for financial well-being.
Pros
Cons
Overall4.9 | |
 | Interest Rate 2% - 3% | Account Charge 0.25% | GMG Rating | Customer Reviews | See Offer Capital at risk | Features:
| Hargreaves Lansdown Lifetime ISA Could Make You £168,676 Extra Over 30 years Account: Hargreaves Lansdown Lifetime ISA Description: Hargreaves Lansdown's Lifetime ISA is a great way to take advantage of the 25% government bonus with your £4,000 Lifetime ISA allowance as fees are low and there are a huge number of markets to invest in. Does HL have a good Lifetime ISA? The latest LISA analysis from Hargreaves Lansdown found that if you invested the full allowance in a stocks and shares Lifetime ISA over 30 years, the tax saving for a basic rate taxpayer could be £26,935, for a higher rate taxpayer £59,949 and for an additional rate taxpayer £66,044. When you deposit money into a Hargreaves Lansdown lifetime ISA, the government will top that amount up by up to 25%. It is one of the best ways to get a head start save for your first home, or to save for your retirement. Once you add in the government top up, a Lifetime ISA investor could be £129,568 better off than a basic rate taxpayer investing outside an ISA, £162,581 better off than a higher rate taxpayer and £168,676 better off than an additional rate taxpayer Hargreaves Lansdown’s Lifetime ISA also benefits from free account opening. In terms of administrative fees for the lifetime ISA, Hargreaves Lansdown operates a scaled charging system with a fee of 0.25% on the first £1.0 million of investments, if that money is held in funds Those charges fall to 0.1%, for fund holdings worth between £1.0 and £2.0 million and fall to zero for investments that are larger than £2.0 million. However, if the investor only holds UK and overseas equities, investment trusts, ETFs, VCTs or Gilts and other bonds, in their Lifetime ISA, then fees are charged at 0.25% capped at a maximum of £45.0 per annum. The HL LISA is geared more towards more confident investors Hargreaves Lansdown gives you one of the most flexible Lifetime ISAs where you can choose exactly what to invest in. With the HL LISA you can invest in over 3,000 funds, UK and international shares as well as investment trusts, bonds and ETFs. Pros
Cons
Overall4.8 | |
 | Interest Rate 1.8% - 2.55% | Account Charge 0.25% | GMG Rating | Customer Reviews | See Offer Capital at risk | Features:
| AJ Bell: Best Lifetime ISA For Low-Cost DIY Investing Account: AJ Bell Lifetime ISA Description: AJ Bell's lifetime ISA is an excellent way to save for your first home (or your retirement). When you invest in a lifetime ISA with AJ Bell you are investing in the stock market where you can potentially make more money than in a cash-interest lifetime ISA. However, it's important to remember that when investing, you could get back less than you put in. But, you could potentially offset any losses against the government's 25% top-up bonus. How does AJ Bell's Lifetime ISA (LISA) work? Invest as little as £25 per month with regular investing and access to a vast range of investments including stocks, over 4,000 funds, ETFs and access your account online 24/7 and deal on the go with the mobile app. Fees: AJ Bell charges 0.25% of the value of your Lifetime ISA, but share account fees are capped at £3.50 a month. Dealing costs are £1.50 for funds and £5 for shares but drop to £3.50 where there were 10 or more online share deals in the previous month Offers:
Pros
Cons
Overall5 |
An What is a Cash Lifetime ISA?
A Cash Lifetime Individual Savings Account (LISA) is a government-backed long-term savings account intended to be used to put aside money to buy a home or for retirement.
To be eligible to open a LISA, you must be older than 18 and younger than 40. The chief benefit is that the government gives a 25% bonus on any money saved through the account, up to a maximum of £1,000 each year.
To collect the full bonus, you need to put £4,000 into a LISA in a given tax year, which runs from April 6th to April 5th in the following calendar year. The bonus is paid on contributions made during a given month, at the end of each month.
However, there is a 25% withdrawal charge if you take out money from a LISA before the age of 60 for any reason other than to purchase a home, unless you are terminally ill. The home needs to be worth £450,000 or less and be bought with a mortgage.
You can only pay into a LISA up to the age of 50. Your funds must be kept in the LISA for at least 12 months after your initial deposit, or you will incur the 25% withdrawal charge.
Cash LISAs versus Stocks & Shares LISAs?
A Cash Lifetime ISA specifically facilitates savers putting away cash for the long term and collecting interest on the balance. They are offered as products by a wide range of banks and investment platforms.
This is opposed to a Stocks & Shares LISA, where the money is intended to be invested in the stock market, either by the saver or a third-party investment manager. Cash savings are usually subject to a low risk of losses – depending on the rate of inflation against interest rates, as well as the relative strength of the currency in question – while stocks generally offer the potential for higher returns and a greater risk of losses.
Cash LISAs do not usually carry an annual fee from the provider. This is another difference with Stocks & Shares LISAs, which usually do.
Cash LISAs are also typically covered by the Financial Services Compensation Scheme (FSCS) guarantee on bank deposits up to £85,000, should the provider fail. This should be confirmed on an individual basis, as the guarantee applies to qualifying financial institutions.
It’s important to note that while the returns can ben better with investments made through Stocks & Shares LISAs are not protected should they fall in value or fail. You can read our in-depth analysis of the best investment Lifetime ISAs here.
Can you open a LISA if you already have an ISA?
Yes, you can open multiple Individual Savings Accounts (ISAs) of different types, including LISAs.
It is possible to open more than one LISA, but you can only pay into one LISA each tax year. You can also transfer a LISA to another provider, for example, to take advantage of a better interest rate on cash or lower platform fees.
Other types of ISAs do not provide the same benefits as LISAs, namely the 25% government bonus to savings, or have the same restrictions. The £4,000 annual limit only applies to LISAs.
These ISAs – Cash, Stocks & Shares, and Innovative Finance ISA – allow savers to put away up to £20,000 tax-free each tax year. This allowance is across all such ISAs, so if someone has more than one ISA, then the limit applies to the total saved between all accounts.
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
To contact Richard, please ask a question in our financial discussion forum.
