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Britons can use lifetime ISAs to save for retirement and buy homes. Today, you can save up to £4,000 annually and receive a 20% bonus from the government. To open a lifetime ISA, you must be between 18 and 39. You must also be a resident of the UK or a Crown servant. Most importantly, you need reliable and reputable lifetime ISA service providers. Our team compared the companies in this region and picked 5 that deserve to be ranked as the best lifetime ISA providers UK. In the spirit of providing accurate and unbiased information, we considered every indispensable factor, including reviews and testimonials on Google Play, the App Store, and Trustpilot.
Having a lifetime individual savings account (LISA) is advisable. Why? With a lifetime ISA, you can save for retirement and cushion your golden years against potential financial difficulties. Additionally, you can use your account to save enough money to buy a home in the future.
With that in mind, many lifetime ISA providers are available in the UK. To make matters worse, unscrupulous criminals run a significant number of the available companies. You must choose wisely to avoid losing your money, and we are here to help.
Our team evaluated the companies in the UK and picked the most outstanding based on regulatory status, fees, and other factors. Select the best lifetime ISA UK from the top 5 brands reviewed here.
List of the Best Lifetime ISA Providers
- Hargreaves Lansdown – Overall Best LISA Provider in the UK
- Skipton Building Society – Best LISA provider for Saving for a Home in the UK
- Beehive Money – Best LISA Provider for Saving for Retirement in the UK
- AJ Bell Youinvest – Best Stocks and Shares LISA Provider in the UK
- OneFamily – Best LISA Provider for Climate-Focused Investing
In This Guide
UK Lifetime ISA Providers: Comparison Table
One question is likely running through your mind: how did we pick the service providers in our guide? And that’s a good query since many lifetime ISA providers are available in the UK. Well, for starters, we didn’t just pick random brands. Our expert team researched the LISA providers in the UK, compared the most credible, and cherry-picked the trailblazers.
Identifying the best lifetime ISA providers UK wasn’t easy. As mentioned, our experts had to research and evaluate countless service providers. We checked numerous elements while working on each company, including regulation and interest rates.
| Best Lifetime ISA | Licensing and Regulation | Minimum Monthly Contributions | Annual Interest Rate |
|---|---|---|---|
| Hargreaves Lansdown | FCA, PRA | £25 | Up to 3.70% tax-free pa/ 3.76 AER |
| Skipton Building Society | FCA, PRA | £25 | 3.25% tax-free pa/AER |
| Beehive Money | FCA, PRA | None | 3.50% AER/tax-free variable |
| AJ Bell Youinvest | FCA, PRA | £25 | Up to 3.50% gross interest rate, 3.55% AER |
| OneFamily | FCA, PRA | £25 | None |
Providers Short Overview
Lifetime ISA service providers often have diverse charges. We evaluated each company’s fees because excessive costs can reduce your investment returns significantly in the long run. Our experts also examined supported investment assets since we want to help you choose a service provider that can meet your needs and preferences. Check the tables below for more information.
Fees
| Best Lifetime ISA | Fees & Charges |
|---|---|
| Hargreaves Lansdown | 0.25% annual account charge, 25% government charge for premature withdrawals |
| Skipton Building Society | 25% government withdrawal charges for withdrawals made within the first 12 months of the first payment |
| Beehive Money | 25% government charge for withdrawals that are not related to purchasing a home and withdrawals made before an investor turns 60 |
| AJ Bell Youinvest | 0.25% funds account charge, 0.25% (£3.50/month max) shares account charge, Up to £5.00 shares dealing charge, £1.50 fund dealing charge |
| OneFamily | 1.1% annual management charge, 25% government fee for withdrawals made within 12 months of the first payment and cash taken directly out of a LISA |
Products
| Best Lifetime ISA | Investment Options |
|---|---|
| Hargreaves Lansdown | Funds, shares, investment trusts, ETFs, corporate bonds and gilts |
| Skipton Building Society | None |
| Beehive Money | None |
| AJ Bell Youinvest | Stocks, shares |
| OneFamily | Stocks, shares |
Our Expert’s Opinion about the Best Lifetime ISA Providers
We thoroughly researched the lifetime ISA providers in the UK. As mentioned, our experts focused on numerous aspects, with licensing and security at the top of the list. The companies we’ve reviewed and recommended below are authorized and licensed by the PRA (Prudential Regulation Authority) and the FCA (Financial Conduct Authority). Consequently, they are guaranteed to be fair and transparent in all their dealings.
Dig in for in-depth overviews of the best lifetime ISA providers in the UK.
1. Hargreaves Lansdown – Overall Best LISA Provider in the UK
Boasting over 1.7 million clients, Hargreaves Lansdown (HL) is our overall best lifetime ISA provider in the UK. This company has been running for over 40 years and is one of the most popular service providers. We consider it the best in the UK since it allows long-term investors to invest in fantastic assets like UK shares, investment trusts, funds, and more.
Any individual aged 18 to 39 can open a HL lifetime ISA. Besides investing in the available products, you can also choose to hold cash. This is the best alternative if you plan to use your money to buy a home or for any other project in less than 5 years. In short, saving cash is ideal for short-term goals (below 5 years), whereas investing is better suited to long-term objectives (5-10 years).
We also consider Hargreaves Lansdown the best overall since it offers personal advice. If you are stranded trying to choose between investing and saving or can’t pick the right investment products, all you need to do is seek advice from Hargreaves Lansdown’s expert team. You will receive customized recommendations that align with your financial goals, risk tolerance, etc.
Pros & Cons
Pros
- A wide variety of investment products, including 3,000+ funds
- Accounts with over £2m incur no annual account charges
- Excellent personalized advice and assistance are available
- Investors can use the HL app to check their LISAs on the go
- Users can start with a £100 lump sum
- Higher interest rates than other industry leaders
Cons
- Low-value accounts incur higher annual charges
- Investing in UK shares exposes you to higher charges
2. Skipton Building Society – Best LISA provider for Saving for a Home in the UK
A home allows you and your loved ones to enjoy uncapped freedom, stability, and security. Plus, owning your home enables you to build home equity, credit, and wealth over time. However, property prices have skyrocketed in the UK over the years. By 2024 January, the average price of houses in the UK was £282,000. You can still transition into homeownership. All you have to do is open a lifetime ISA with the Skipton Building Society.
You can open a LISA with Skipton today if you are over 18 and under 39 years old. With it, you’ll be able to save up to £4,000 each tax year. Your savings will accrue juicy bonuses over the years. Then, once you hit 60, this service provider will allow you to use the cache to buy the home of your dreams.
The Skipton Building Society has helped millions of people transition into homeownership since 1853. If you ever doubted this service provider, rest assured it has an excellent track record. Furthermore, it awards a £250 cashback bonus to Skipton LISA investors who opt for the company’s wide variety of variable and fixed mortgages. Besides purchasing a home, you can use a Skipton Lifetime ISA to save for retirement.
Pros & Cons
Pros
- Offers a wide variety of mortgages to prospective home owners
- Helps investors save for homes worth up to £450,000
- Straightforward 3.25% tax-free annual interest rate for all clients
- Existing homeowners can use their LISAs to save for retirement
- First-time home buyers can get a juicy £250 cashback reward
Cons
- Only cash savings are supported
3. Beehive Money – Best LISA Provider for Saving for Retirement in the UK
According to statistics, 18% of men and 12% of women aged 69 are in paid work in the UK. Sadly, many of these people are still working because they can’t afford to retire. We don’t want the same fate to befall you. Start saving for retirement today with a LISA. Even people as young as 19 can do it, but you must be less than 39. A solid lifetime ISA will enable you to retire comfortably and enjoy your golden years.
With that in mind, we consider Beehive Money the best LISA provider for Britons who want to save for retirement. Like other service providers, Beehive Money allows people aged 19-39 to open a LISA account and deposit up to £4,000 each tax year. You can save as much as possible until the age of 50. Your funds will become accessible immediately after your 60th birthday.
Once you open a LISA and start saving for later life, your funds will be inaccessible until you are 60 years old. If you make a withdrawal before reaching the stipulated age, 25% of the amount you withdraw will be used to cover government charges. That aside, Beehive Money also allows its clients to save for their first homes.
Pros & Cons
Pros
- Allows individuals to start with anything from £1
- First-time homebuyers receive cost-free mortgage advice
- Backed by the Nottingham Building Society, a reputable mutual society
- Account holders can buy a home 12 months after signing up
- Offers compensation for savings of up to £85,000
Cons
- No investment products like stocks and shares
4. AJ Bell Youinvest – Best Stocks and Shares LISA Provider in the UK
If you are searching for a lifetime ISA provider that enables you to invest LISA funds in stocks and shares, Check out AJ Bell Youinvest. We consider it one of the best service providers since it allows clients to invest regularly with anything from £25. Moreover, with AJ Bell Youinvest, you can invest in diverse assets, including shares across 25 markets and 2,000+ funds.
You can use your AJ Bell Youinvest Lifetime ISA to save for retirement or buy your first home. While doing so, you’ll enjoy many outstanding perks, including a low fund dealing charge (£1.50). Also, if you buy and sell shares frequently with this service provider, you’ll enjoy you’ll enjoy a lower dealing charge (£3.50). The conventional shares dealing charge on this platform is £5.00.
We also recommend AJ Bell Youinvest because it charges zero fees for setting up a new account, funding your account, and holding cash in your account. Moreover, you can access your LISA 24/7 from anywhere with the AJ Bell Youinvest mobile app. Not to mention, the company has experienced specialists who are ready to help you choose the best investment products.
Pros & Cons
Pros
- Low shares dealing costs
- Excellent customer support services
- Investors with short-term goals can opt for a Cash LISA
- Specialists are available to provide expert guidance
- Extensive range of investment products
- Reasonable annual account charge
Cons
- Dealing by telephone costs up to £25
- People who need non-standard investments must pay a £100 fee
5. OneFamily – Best LISA Provider for Climate-Focused Investing
Rapid climate change has led to countless issues, including more frequent, intense heat waves, droughts, and storms. That said, if you’d like to play your part in mitigating this problem and making the world a better place, consider engaging in climate-focused investing with OneFamily.
OneFamily has a lifetime ISA program that you can join today. It will help you save a nice nest egg for retirement or your first home. The money you save with OneFamily will be invested in shares and stocks. However, you can also opt for a cash LISA if you prefer to hold cash rather than invest in the aforementioned assets.
Here’s the best part. If you choose OneFamily’s stocks and shares LISA, this service provider will invest 1000% of your money in stocks and shares from companies dedicated to mitigating climate change. But to enjoy climate-focused investing, you must choose the Global Equity fund. Otherwise, only 35% of your investment will be climate-focused if you go with Global Mixed. The rest will be invested in fixed-interest, lower-risk products without factoring in the involved companies’ climate scoring.
Pros & Cons
Pros
- Easy and quick account setup process
- Offer 2 climate-focused funds
- Both cash and stocks & shares LISAs are available
- Wonderful support services
Cons
- Higher annual account management fees than its peers
- Limited educational materials on LISAs
What is a Lifetime ISA?
A lifetime ISA is an individual savings account that allows you to save for your first home or retirement. As of 2024, you can deposit up to £4,000 each tax year in a LISA. Anyone aged above 18 and below 40 can open this account. You can only save money in a LISA until you’re 50. Once you exceed that threshold, you won’t be able to top-up your lifetime ISA account or enjoy additional bonuses.
Speaking of bonuses, once you open and start funding a LISA, the government will add a 25% bonus to your nest egg. This incentive can reach up to £1,000 annually. Also, the government has set a £20,000 ISA limit. That means you can have different individual savings accounts, including a LISA, but the combined savings can’t exceed £20,000 during the 2023/2024 tax year.
Lifetime ISAs were introduced by George Osbourne in 2017. Their primary objective was to help as many under 40s as possible to climb the housing ladder. Today, there are two types of lifetime ISAs: cash and stocks and shares. A cash LISA allows you to save money and earn interest. On the other hand, stocks and shares LISAs account owners the opportunity to invest in different investment products, including shares, bonds, and investment trusts.
How to Choose the Best Lifetime ISA Provider
When it’s time to choose the best lifetime ISA provider in the UK, be extra cautious. There are many fake and fraudulent LISA offers out there. If you invest with them, you will lose your money. You can avoid them and identify reliable focus providers by focusing on these factors:
Credibility and Reliability
Type of LISA
Fees
Online Reputation
Customer Support
The most credible and reliable lifetime ISA providers are regulated by the FCA and the PRA. Check if the entity you want to save and invest with is authorized and monitored by these authorities. If not, find a better option. Going with unregulated companies will only expose you to massive financial losses.
You can either choose a cash or stocks and shares lifetime ISA. Whichever you pick, ensure your preferred service provider has it. Otherwise, if you don’t do your homework, you will set yourself up for future disappointment and unnecessary headaches.
Before committing to any LISA service provider, check account setup, management, and exit fees. Also, confirm if the company has extra hidden costs. A service provider with reasonable fees will help you reach your savings and investment goals. However, a company with excessive charges will erode potential returns.
Research every LISA service provider’s reputation online. Numerous popular platforms can help you to that end, including the App Store, Google Play, and Trustpilot. The best lifetime ISA provider in the UK should have positive online ratings and reviews. The opposite is also true.
To enjoy prompt assistance and effective issue resolution, you need to save with a lifetime ISA provider with high-quality support service. Test every available support channel, from phone to email. Check if you get immediate responses and accurate answers. Avoid service providers who ignore your queries for extended periods.
How to Sign up for an Account with a Lifetime ISA Provider
Signing up for a lifetime ISA account is easy. It may sound hectic since most service providers have stringent KYC policies, but it’s not. You can open an account with a lifetime ISA service provider today by following these steps:
Step 1: Visit your chosen provider’s official site
Step 2: Sign up
Step 3: Verify your account
Step 4: Make contributions
Go to your preferred service provider’s official site and look around. Examine everything before making any other moves, especially the available types of LISA accounts, fees, and investment products, if any are available. Additionally, read the company’s terms and conditions. Don’t sign up with an entity with policies you disagree with.
Start the registration process by clicking the appropriate button. For instance, to open an AJ Bell Youinvest account, you must click “Open a Lifetime ISA.” Then, fill out the registration form carefully. Provide all required information, including your name, DOB (date of birth), and address.
You’ll need to verify your identity and address with the right documents. For identity verification, you’ll need a copy of the relevant document, which can be your national ID card. To verify your location, you must share a copy or photo of a recent utility bill or any other relevant document.
Make your first contribution while heeding your chosen service provider’s mandates. Remember, some entities allow their customers to make lump sum payments, and others don’t. You should also consider setting up regular contributions from your bank account. They will help you remain disciplined and committed to your goal.
Conclusion
Choose the best service provider from the ones we’ve reviewed in our guide. But before you start making contributions, learn basic rules. For instance, research what will happen if you withdraw your money before the age of 60. Additionally, familiarize yourself with the risks associated with these savings accounts, especially stocks and shares lifetime ISAs.
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