What is the difference between a Cash and Stocks & Shares Lifetime ISA?

We offer two types of Lifetime ISA:

• A Cash Lifetime ISA – This works like a cash savings account in that you earn interest on funds held in the account. The interest rate for the Moneybox Cash LISA is 4.25% AER, made up of a 3.50% AER (variable) interest rate and a 0.75% introductory bonus interest rate for your first year.
• A Stocks & Shares Lifetime ISA – With a Stocks and Shares LISA, rather than earning interest like you do with a Cash LISA, you invest your money in funds. Investing over the long term (5 or more years) can offer higher returns, although it’s important to remember that the value of your investments can go up and down, and you may get back less than you invest.