A Lifetime ISA (LISA) gives you a 25% government bonus — up to £1,000 per year — on contributions up to £4,000 per tax year. You can use it for a first home purchase or in retirement from age 60. The LISA market is smaller than the mainstream ISA market, but the provider you choose still matters for fees, investment range, and the quality of the bonus application process. This is general information, not a personal recommendation.
Key takeaways
- LISA gives a 25% government bonus (up to £1,000/year) on contributions up to £4,000/year
- AJ Bell is our top-ranked S&S LISA for fees and investment range
- Skipton Building Society offers the longest-running cash LISA
- Early withdrawal outside permitted events incurs a 25% penalty — you lose more than just the bonus
- You must be aged 18–39 to open a LISA; you can contribute until age 50
2026 Lifetime ISA League Table
We separate stocks & shares LISAs (for long-term investors) from cash LISAs (for first-time buyers with shorter time horizons). Fees and rates correct as at June 2026.
Stocks & Shares LISAs
| # | Provider | Platform Fee | Investment Range | Verdict |
|---|---|---|---|---|
| 1 | AJ Bell | 0.25% up to £250k | Wide: funds, ETFs, investment trusts, shares | Best all-round S&S LISA; competitive fee and widest investment range in the LISA market |
| 2 | Moneybox | 0.45% platform + fund charges | Limited fund selection (global tracker focus) | Excellent mobile app and frictionless onboarding; higher fee than AJ Bell but very user-friendly |
| 3 | Nutmeg | 0.45% (managed); 0.25% (fixed allocation) | Managed or fixed-allocation portfolios | Managed approach suits investors who want a hands-off experience; no self-directed fund picking |
| 4 | Hargreaves Lansdown | 0.45% (capped £45/yr on shares/ETFs) | Widest range of any LISA provider | Excellent choice and service; the cap on shares/ETFs provides some protection but the percentage fee is high for fund-only investors at this ISA's £4,000 contribution limit |
Cash LISAs
| # | Provider | Interest Rate (AER) | Access Type | Verdict |
|---|---|---|---|---|
| 1 | Skipton Building Society | ~3.5% AER (variable; check current rate) | Instant access (within LISA rules) | Longest-running cash LISA; strong Skipton track record; check current rate against alternatives |
| 2 | Moneybox Cash LISA | ~3.0% AER (variable; check current rate) | Instant access (within LISA rules) | Simple mobile-first experience; easy bonus-claim process; rate slightly below Skipton |
| 3 | Hargreaves Lansdown Cash LISA | Variable (check current rate) | Instant access (within LISA rules) | Convenient if you already use HL; rate competitive but not always market-leading |
Sources: provider fee schedules and product pages accessed June 2026; MoneyHelper: Lifetime ISA; GOV.UK: Lifetime ISA.
LISA Rules: What You Need to Know
Before choosing a LISA provider, make sure you understand the rules:
- Eligibility — You must be aged 18–39 to open a LISA. You can contribute until age 50.
- Annual limit — You can contribute up to £4,000 per tax year, which counts towards your £20,000 ISA allowance.
- Government bonus — HMRC adds 25% to your contributions, up to £1,000 bonus per year. The bonus is paid to the provider, usually within 6–8 weeks of the end of each month.
- Permitted withdrawals — You can withdraw tax-free for: (a) purchasing your first home (property must be £450,000 or less, and you must use a solicitor); or (b) retirement from age 60; or (c) terminal illness.
- Withdrawal penalty — Any other withdrawal triggers a 25% government penalty on the full amount withdrawn (not just the bonus). This means you lose more than just the bonus if you withdraw early outside a permitted event.
The LISA is not suitable for everyone. Use our financial planning tools to compare LISA vs ISA vs pension to see which combination best suits your goals.
Methodology and Sources
Updated: June 2026. Next scheduled review: December 2026.
Ranking criteria:
- Total annual cost / rate (50%) — For S&S LISAs: platform charge on a £4,000 annual contribution. For cash LISAs: AER interest rate (higher is better).
- Investment range / product design (25%) — For S&S: breadth of available funds and ETFs. For cash: flexibility and ease of bonus application.
- Service quality (15%) — App ratings, Trustpilot reviews, and bonus processing speed.
- Ease of conveyancing integration (10%) — Clarity and speed of the first-home withdrawal process.
Sources: Provider websites (AJ Bell, Moneybox, Nutmeg, Hargreaves Lansdown, Skipton Building Society); MoneyHelper: Lifetime ISA; GOV.UK: Lifetime ISA rules; FCA Register (June 2026).
Important: Cash LISA rates change frequently — always check the provider's current rate before opening an account. This table is general information, not a personal recommendation.
Important: This guide is for general educational purposes only and does not constitute financial advice. Tax rules can change and individual circumstances vary. If you need advice tailored to your situation, please consult a qualified, FCA-regulated financial adviser. You can browse advisers in our adviser directory.