What is a Lifetime ISA?

A Lifetime ISA (or LISA) is an individual savings account (ISA) that’s designed to help you save or invest for your first home. For every £1 you deposit, you’ll get a 25% top-up from the government, which could be up to £1,000 a year – totally free!

If you’re thinking about getting on the ladder, they’re a great, tax-efficient way to boost your savings and speed up the process.

 

Learn more about Lifetime ISAs and how they work here

 

Which Lifetime ISA is right for you?

There are two types of Lifetime ISA, Cash LISAs and Stocks & Shares LISAs. Both let you contribute up to £4,000 each tax year, and receive the 25% government bonus too!

But how are they different?

  • Cash LISAs are low risk, but low return. If you’re buying in the near term, they’re a great choice.
  • Stocks & Shares LISAs are more risky but have the potential for higher returns, too. They might be a better choice if you’re looking to buy in 5+ years.

 

Discover more about the differences between a Cash LISA and a Stocks & Shares LISA

 

Who offers Lifetime ISAs?

You can open either a Cash LISA or Stocks & Shares LISA with Moneybox. All you have to do is download the app and get started with just £1 –  we’ll walk you through the rest. Plus, you’ll get a whole host of tools and services that’ll make your home-buying journey simple.

 

The Moneybox Cash Lifetime ISA

Our Cash Lifetime ISA offers a market-leading rate of 4.40% AER (variable), this includes a 3.50% base rate (variable) and a fixed one year bonus interest rate of 0.90%. 

 

Open a Cash Lifetime ISA

 

The Moneybox Stocks & Shares Lifetime ISA

If your home-buying ambitions are still a way down the road, you may be better off opening a Moneybox Stocks & Shares Lifetime ISA.

It’s a great way to grow your money over the long term. Through it, you can access our full range of funds and choose from one of our 3 simple Starting Options:

  • Cautious: aims for modest growth with low-risk investments
  • Balanced: aims for more growth with medium-risk investments
  • Adventurous: aims for the highest level of growth by accepting a greater degree of risk

They reflect your risk appetite (that’s how much risk you’re willing to take), and can be changed at any time. The best bit of all? You can get started with just £1, so you start small and build your confidence. 

 

Open a Stocks & Shares Lifetime ISA

 

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

Tax treatment depends on individual circumstances and is subject to change

All investing should be long term (min. 5 years). The value of your investments can go up and down, and you may get back less than you invest