Best Lifetime ISA Providers (LISA) 2024

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We have ranked and reviewed the best Lifetime ISAs in the UK that are regulated by the FCA.  Lifetime ISA providers let UK residents between 18 and 40 invest or save a maximum of £4,000 per year of their ISA allowance to use as a deposit for a house or to use in retirement. LISAs give you a government bonus of 25% on top of your contributions, and you can also make money through interest payments and investment returns. 

Best Lifetime ISA Providers 2024

Nutmeg: Best Managed Lifetime ISA

Nutmeg
  • Investments: Pre-made portfolios
  • Minimum deposit: £100
  • LISA management fees: 0.45% – 0.75%
  • LISA share charges: n/a
  • GMG rating:
    (4.1)

Capital at risk

Approved by Nutmeg on the 11 September 2023

Nutmeg Lifetime ISA Review
Nutmeg

Name: Nutmeg

Description: Owned by JP Morgan, Nutmeg won the “Best Lifetime ISA” category in our 2022 award, offering one of the simplest low cost LISAs with a range of low, medium and high-risk options.
Capital at risk. Tax treatment depends on your individual circumstances and may change in the future

Key Features

  • Investments: Pre-made portfolios
  • Minimum deposit: £100
  • LISA management fees: 0.45% – 0.75%
  • LISA share charges: n/a

Fees: A Lifetime ISA with Nutmeg costs 0.75% for their managed portfolios which drops to 0.35% for balances over £100k. For their fixed allocation portfolios they charge 0.45% dropping to 0.25% for balances over £100k. For all portfolios, there is an addition charged by the investment fund managers of around 0.2% and the market spread on buying and selling portfolios is on average 0.07%.

Pros

  • Simple Lifetime ISA investment platform for beginners
  • Regular investing available (repeat orders)
  • Scaled account fees that reduce as your LISA grows

Cons

  • Cannot invest in individual shares
  • Pricing
    (5)
  • Market Access
    (3.5)
  • Online Platform
    (4)
  • Customer Service
    (4)
  • Research & Analysis
    (4)
Overall
4.1

Hargreaves Lansdown: Best range of LISA investment options

Hargreaves Lansdown
  • Investments: Shares, ETFs, bonds & funds
  • Minimum deposit: £1
  • LISA fund charges: 0.25%
  • LISA share charges: 0.25% 
  • Dealing fee: Shares £5.95 – £11.95, funds £0
  • GMG rating:
    (4.8)
Hargreaves Lansdown Lifetime ISA Review
Hargreaves Lansdown

Name: Hargreaves Lansdown Lifetime ISA

Description: 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.
Capital at risk.

Key Features

Hargreaves Lansdown’s Lifetime ISA is a great way to take advantage of the 25% government bonus with you £4,000 Lifetime ISA allowance as fees are low and there are a huge amount of markets to invest in.

  • Investments: Shares, ETFs, bonds & funds
  • Minimum deposit: £1
  • LISA fund charges: 0.25%
  • LISA share charges: 0.25% 
  • Dealing fee: Shares £5.95 – £11.95, funds £0

 

Fees: It costs 0.25% of the value of your Lifetime ISA portfolio to have a LISA with Hargreaves Lansdown. Share charges are capped at £45 per year. There is no charge for buying funds, but shares are charged at £11.95 per deal or £5.95 if you do over 20 deals per month.

Pros

  • Thousands of UK and international shares, bonds & funds
  • Ready-made portfolios with different levels of risk
  • Excellent research and analysis
  • An established and listed company on the LSE.

Cons

  • You have to pick your own investments
  • Pricing
    (4.5)
  • Market Access
    (5)
  • Online Platform
    (4.5)
  • Customer Service
    (5)
  • Research & Analysis
    (5)
Overall
4.8

AJ Bell: Best for low-cost DIY LISA investing

AJ Bell
  • Investments: Shares, ETFs, bonds & funds
  • Minimum deposit: £500
  • LISA fund charges: 0.25%
  • LISA share charges:0.25%
  • Dealing fee: Shares £4.95 – £9.95, funds £1.50
  • GMG rating:
    (4.3)

Capital at risk

AJ Bell Lifetime ISA Review
AJ Bell

Name: AJ Bell Lifetime ISA

Description: Invest as little as £25 per month with regular investing and access to a vast range of investments including stocks, over 2,000 funds, ETFs and access your account online 24/7 and deal on the go with the mobile app.
Capital at risk

Key Features

  • Investments: Shares, ETFs, bonds & funds
  • Minimum deposit: £500
  • LISA fund charges: 0.25%
  • LISA share charges:0.25%
  • Dealing fee: Shares £4.95 – £9.95, funds £1.50

 

Fees: AJ Bell charges 0.25% of the value of your for a general investment account, but share account fees are capped at £3.50 a month. Dealing costs are £1.50 for funds and £9.95 for shares but drop to £4.95 where there were 10 or more online share deals in the previous month

Offers:

  • Recommend a friend, and you’ll both get £100 gift vouchers – When you recommend a friend to AJ Bell that invests more than £10,000 in a SIPP or ISA, you and your friend can get One4All gift vouchers worth £100.
  • Switch your share dealing account and receive up to £500 to cover exit fees – If you transfer your share dealing general investment account valued at more than £20,000 to AJ Bell they will help cover any exit fees charged by your current provider. They will cover £35 per investment moved and up to £100 for general exit fees, up to an overall maximum of £500 per person.
  • Free subscription to Shares Magazine worth £220
    Get a free subscription to Shares (worth over £220 per year) by maintaining a balance of £4,000 or more across your AJ Bell investing accounts.

Pros

  • Pick your own LISA shares, funds and bonds or use their investing ideas
  • Low LISA account fees capped at £3.50 a month for shares

Cons

  • High phone dealing charges
  • Pricing
    (4.5)
  • Market Access
    (5)
  • Online Platform
    (4)
  • Customer Service
    (4)
  • Research & Analysis
    (4)
Overall
4.3

Dodl: Easy to use Lifetime ISA app for beginners

Dodl by AJ Bell
  • Investments: Shares, ETFs, bonds & funds
  • Minimum deposit: £100 or £25 per month
  • LISA fund charges: 0.15%
  • LISA share charges: 0.15% 
  • Dealing fee: £0
  • GMG rating:
    (3.9)

Capital at risk

AJ Bell Dodl Lifetime ISA Review
Dodl by AJ Bell

Name: AJ Bell Dodl Lifetime ISA

Description: AJ Bell Dodl’s lifetime ISA 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.

Summary

  • Investments: Shares, ETFs, bonds & funds
  • Minimum deposit: £100 or £25 per month
  • LISA fund charges: 0.15%
  • LISA share charges: 0.15% 
  • Dealing fee: £0

Pros

  • Low fees
  • Easy to use
  • Simple investment choices

Cons

  • Limited market range
  • Pricing
    (4)
  • Market Access
    (3)
  • Online Platform
    (4.5)
  • Customer Service
    (4)
  • Research & Analysis
    (4)
Overall
3.9

❓Methodology: We have chosen what we think are the best Lifetime ISAs based on:

  • over 17,000 votes in our annual awards
  • our own experiences testing the LISA accounts with real money
  • an in-depth comparison of the features that make them stand out compared to alternative LISAs.
  • interviews with the Lifetime ISA platform CEOs and senior management

Compare Lifetime ISA Providers

You can use our comparison of what we think are the best lifetime stocks and shares ISA accounts to compare fees for investing in funds and shares and see if you have to make your own investment decisions or if a professional fund manager does it for you. 

Lifetime ISA ProviderLISA FeesMin DepositGMG RatingMore Info
Hargreaves Lansdown Lifetime ISA0.25%£1
(4.8)
See LISA Offer
Capital at risk
AJ Bell Youinvest Lifetime ISA0.25%£500
(4.3)
See LISA Offer
Capital at risk
Dodl by AJ Bell0.15%£100
(3.9)
See LISA Offer
Capital at risk
Nutmeg Lifetime ISA0.45% – 0.75%£100
(4.1)
See LISA Offer
Capital at risk

⚠️ FCA Regulation

All lifetime ISA providers that operate in the UK must be regulated by the FCA. The FCA is the Financial Conduct Authority and is responsible for ensuring that UK lifetime ISA providers are properly capitalised, treat customers fairly and have sufficient compliance systems in place. We only feature lifetime ISA providers that are regulated by the FCA, where your funds are protected by the FSCS.

Lifetime ISA FAQs:

Yes. With cash Lifetime ISAs, under the Financial Services Compensation Scheme (FSCS) your money is protected up to £85,000 per banking institution should your provider go bust.

You are also protected up to £85,000 if you lose money because the provider of your stocks and shares LISA goes bust but this doesn’t protect you if you’re out of pocket because the companies you are invested in fail.

Anyone over 18 and under 40 who is a UK resident can open and pay into a Lifetime ISA (LISA). If you stop living in the UK you have to stop paying into it.

If you’re not a UK resident you can still open and pay into one if you’re a crown employee working overseas, such as you’re in the UK armed forces, or you’re the spouse or civil partner of one.

Only individuals can open Lifetime ISAs – there are no joint accounts. This means if you’re part of a couple you can each have one as long as you’re eligible.

You can only open one Lifetime ISA each tax year and pay into one, although you can have more than one over your lifetime.

There’s a cooling-off period of 30 days when you first take out the account during which you can close it without charge and won’t get the bonus. 

There’s no charge for your Lifetime ISA if you die.

You apply for a Lifetime ISA directly with your chosen provider, which is usually done online. You will have to supply details such as your date of birth, national insurance number and proof of address so the provider can make sure you’re eligible as well as proof of identity.

Help to Buy ISAs were available between 2015 and 2019 to help first-time buyers save for a deposit to buy a home worth up to £250,000, or £450,000 in London. Although you can no longer open a Help to Buy ISA, as they’ve been replaced by LISAs, if you already have one you can continue to save into it until November 2029.

As well as interest, you get a bonus of 25% of the amount you save into it from the government up to a contribution limit of £12,000, giving you a total bonus of up to £3,000. You solicitor or conveyancer claims the bonus for you once you’ve exchanged contracts on a property.

After an initial deposit of up to £1,000, every month you can pay a maximum of £200 into it (up to £2,400 a year) and add another £50 to your bonus. This means it would take a minimum of four-and-a-half years to get the full amount. You have to save at least £1,600 to qualify for a bonus.

You can save more in a LISA each year – as a lump sum if you choose – than in a Help to Buy Isa and get a bigger bonus. And as you are paid your LISA bonus every month, you can get interest or investment growth on it. You can buy a more expensive property outside London with a LISA too.

Unless you plan to buy a property within the next 12 months it’s worth transferring your Help to Buy ISA into a Lifetime ISA, although it will count towards your LISA limit for that year.

You can open a Lifetime ISA if you already have a Help to Buy ISA and pay into them both in the same tax year but you can only use the bonus from one of them to buy a home. So, if you use your Help to Buy bonus for a home you’ll then only be able to use the money in your LISA once you turn 60 (unless you pay a penalty to withdraw it early).

Alternatively, if you decide to use your LISA to buy a home you can either transfer your Help to Buy ISA into it first, transfer it to another ISA or take the money out. As you won’t be using it to buy a home you won’t get the bonus.

To transfer your Help to Buy ISA you need to fill out a transfer form with your new provider, which will organise the transfer for you. If you take the money out yourself it will lose its tax-free status and you’ll only be able to reinvest it into an ISA as part of your allowance for the current tax year.

Yes, it’s possible that the rules on Lifetime ISAs could change in the future to allow you to take money out without charge in other circumstances. There may also be changes to the tax rules around pensions. This means that whether a LISA suits you and when saving into a pension beats saving into a LISA may also change.

Because profits are tax free and the Government will top your LIfe up with essentially a free bonus based on 25% of your contributions. A Lifetime ISA helps you save for buying your first home or later life with a bonus from the government.

For investment Lifetime ISAs, AJ Bell has the lowest platform fee at 0.25% but the cheapest one for you will also depend on how often you plan to buy and sell investments as you also pay charges for each deal.

Yes, you must be at least 18 to open one and under 40. You must be a UK resident unless you’re a crown employee working overseas or the spouse or civil partner of one. To use a Lifetime ISA to buy a home you must be a first-time buyer, which means you have never owned a property anywhere in the world before.

If you don’t use the money in your Lifetime ISA to buy a home you have to wait until you’re 60 to withdraw money without charge (unless you’re terminally ill) but you can take it out if you pay a penalty.

You have to pay a penalty of 25% of the money you take out early.

You may be able to choose to reinvest any income you make from your investments rather than taking the money out with the aim of boosting your returns further.

Yes, you can open and contribute to one of each type of ISA every tax year.

No, but you and your partner can each open a Lifetime ISA and get the bonus.

Yes, you can use some of the money to buy a home and use the rest for your retirement once you turn 60.

This article contains affiliate links which may earn us some form of income if you go on to open an account. However, if you would rather visit the lifetime ISA provides via a non-affiliate link, you can view the product pages directly here:

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