Stocks & Shares Lifetime ISA explained
A Stocks & Shares Lifetime ISA (LISA) is designed to help you save for your future. Like a Cash Lifetime ISA, you can deposit up to £4,000 each tax year in a Stocks & Shares LISA and receive a government bonus of 25% too. Here’s how they’re different.
Instead of earning interest (on top of your government bonus) like a Cash Lifetime ISA, a Stocks & Shares LISA invests your money into funds with the goal of growing your money over time. Because of this, a Stocks & Shares LISA is a great way to build your house deposit if your goal is more than five years in the future – because the best investing gains are made over the long term. Just remember, a Stocks & Shares Lifetime ISA is an investing account, and you might get back less than you invest.
It’s good to remember that with any LISA, if you withdraw money for any reason other than buying your first home or before you turn 60, you’ll incur a 25% withdrawal charge.
Who can open a Stocks & Shares Lifetime ISA?
Any UK resident between 18-40 years old can open a Stocks & Shares Lifetime ISA. Once open, you can keep investing in it until you’re 50. After that, you won’t be able to make any more deposits or get the government bonus – but you’ll still see gains (and losses) on your invested money.
Who offers Stocks & Shares Lifetime ISAs?
There are lots of Stocks & Shares LISAs to choose from, including one from Moneybox. But you have to make sure you open the one that’s right for you. Our Stocks & Shares Lifetime ISA gives you access to our full fund range – including funds for the S&P 500, FTSE 100, gold, technology, healthcare and more!
The Moneybox Stocks & Shares Lifetime ISA
The Moneybox Stocks & Shares Lifetime ISA helps you invest toward your first home. If you’re thinking of getting on the ladder in the not-too-near future (5+ years), it’s a great option to consider.
With it, you’ll receive a 25% bonus for every £1 you invest (with a maximum bonus of up to £1,000 each tax year), and your money will be automatically invested into the market. You can decide how you’d like to start investment from three simple options (Cautious, Balanced, or Adventurous) and change your approach whenever you feel comfortable.
As well as the funds we’ve already mentioned, we’ve also got a whole host of easy-to-use, free in-app tools (like our Mortgage Calculator, which will help you visualise just how much you’ll need to put aside to buy your first home, and how soon you could achieve it). You can even access our dedicated team of Mortgage Advisors, right from your pocket.
If you’re not looking to invest your money, but are thinking of saving for your first home, check out our market-leading Cash LISA.
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.
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.