Lifetime ISA

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

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 4.86% AER, made up of a 3.30% AER (variable) interest rate and a 1.56% 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.

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It's important you know

Capital at risk. All investing should be for the longer term. The value of your investments can go up and down, and you may get back less than you invest. Tax treatment depends on individual circumstances and may be subject to change in the future.

A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid into your Lifetime ISA.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Payments you make into your pension won’t be accessible until the minimum pension age (currently 55, increasing to age 57 from 2028). Tax treatment depends on individual circumstances and may be subject to change in the future.

For Business Saver: T&Cs apply. Max one withdrawal per day.

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