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Lifetime stocks and shares ISAs

saving for the future you want

See our broad range of LISA deals

Why search for a stocks and shares Lifetime ISAs with MoneySuperMarket?

  • It's quick and easy

    Our goal is to help you find the best stocks and shares Lifetime ISA

  • View our panel of providers

    See a range of different Lifetime ISAs with product information provided by each brand

  • Apply today

    Click though to make your application and get on your way to watching your money grow

What is a stocks and shares Lifetime ISA?

The Lifetime ISA is a government scheme designed either to help you take the first step onto the property ladder – or save for your retirement.

If you save up to £4,000 a year towards a deposit, you get a 25% government bonus. That’s up to £1,000 for free from the government each year you save. Rather than putting your money in a cash saving scheme and earning interest, with a stocks and shares Lifetime ISA you get the chance to invest your money in the stock market.

But be aware that while your money could grow in value, investing in stocks and shares comes with risk, meaning your money could also fall in value. For this reason a Lifetime stocks and shares ISA is more likely to suit those investing for the long term (for retirement) than those saving towards a home deposit.

How do Lifetime stocks and shares ISAs work?

  • Choose a provider

    Compare the investment services on offer, the minimum monthly investment level and the annual account charges and select an ISA provider. Open your account online.

  • Start investing

    Think about the level of risk you’re comfortable with. Do you want your Lifetime ISA provider to do the fund or stock picking, or do you want to self-select the funds you invest in?

  • Get paid a bonus

    Save or invest £4,000 a year into a Lifetime ISA and get up to £32,000* in government bonus (before any investment growth). Bonuses are paid until you reach 50. *(based on opening a LISA at age 18)

What am I able to invest in?

With a Lifetime stocks and shares ISA, there are a range of investment options.

  • Stocks and shares

    You could invest directly in individual company stocks

  • Exchange traded funds (ETFs)

    A lower cost form of investing – ETFs typically track a particular index or market

  • Bonds

    Bond funds invest in government or corporate bonds

  • Unit trusts and investment trusts

    Choose from a huge range of investment funds to suit your risk appetite

What are the pros and cons of stocks and shares Lifetime ISAs?

There are advantages and disadvantages to investing in a stocks and shares Lifetime ISA. Here are some things to consider:

  • Advantages

    • They’re tax-efficient, plus savings benefit from a government bonus
    • It’s a great way to save for later life
    • Your investment has the potential to outperform a cash Lifetime ISA over the longer-term
  • Disadvantages

    • Investing comes with risk. You may get back less than you invested if the stock market falls
    • Investments tend to have charges, which can erode returns
    • If you withdraw money from your Lifetime ISA before you reach 60 - and you don’t use it to buy your first home – you'll face a withdrawal charge of 25% on the amount you take out

How to choose the right stocks and shares Lifetime Isa for you

The right stocks and shares Lifetime ISA for you will depend on a number of factors, including:

  • Your attitude to risk

    How much risk are you prepared to take with your money? Do you want to pick your own funds or do you want someone else to manage your ISA and make the investment decisions?

  • Minimum investment

    Some investment ISAs, including stocks and shares Lifetime ISAs will have a minimum monthly or lump sum investment, so make sure this fits your budget

  • Fees and charges

    Check what annual fund charges might be applied on your ISA. Fees and charges can add up over time and start to eat in to your investment returns.

  • Customer service

    Think about what support you’ll get with your investment. Does the ISA provider offer webchat or can you get help over the phone or on email?

What are the LISA rules? 

Lifetime ISAs can be a great way to save and invest tax-free for the future. But they come with rules attached. Here’s what you need to know:

  • You need to be between 18 and 39 and a UK resident
  • You can save up to £4,000 a year tax-free, and benefit from a 25% government bonus 
  • You can get up to £32,000 in government bonus 
  • You can transfer other ISA savings into your Lifetime ISA, where the provider allows it 

You can use some or all of your Lifetime ISA savings to purchase your first home. In many cases first time buyers may prefer to save in a cash Lifetime ISA for this – as there is no risk to capital. Even if you used your LISA to buy your first home, you can still continue to pay in up to £4,000 a year, and earn the bonus, until you reach 50. You can withdraw all your LISA funds once you turn 60.

How to choose a Lifetime ISA with MoneySuperMarket

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    Browse our providers

    Just click the button below to see a list of all our Lifetime stocks and shares ISAs

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    Review and choose

    View accounts from leading Lifetime ISA providers and compare the terms

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    Click through to provider

    When you find the Lifetime ISA you want, click straight to the provider to apply

With a cash Lifetime ISA, you put money into a cash saving scheme. This works like any other cash savings account, but as it’s an ISA, returns are tax-free. With an S&S Lifetime ISA, you get the opportunity to invest money in the stock market (also tax-free). While there is the potential for higher returns with an investment LISA, there is risk involved. Investments can go up and down. If the stock market falls, you could lose money. There is almost no risk with a cash LISA, but returns may be lower. With a S&S LISA, the overall amount you get is down to the performance of the underlying assets you choose to invest in.

The 25% government bonus (of up to a maximum of £1,000) is paid each tax year until you turn 50. It is paid on a monthly basis. Once you’ve reached 50, you can continue to save, but no further bonus will be paid.

The annual ISA allowance is £20,000 in the current tax year. This means that if you have £4,000 in a Lifetime ISA – either in cash, or in stocks-and-shares – you still have a tax-free ISA allowance of £16,000 to use in other types of ISA.

Your savings are protected in the event your savings or investment provider goes bust - up to £85,000 (per person per banking group) by the Financial Services Compensation Scheme.

You can compare savings accounts using a number of factors. These include the interest rates they offer as well as how long the rate will last, the amount you might need to deposit in order to open the account, and how you can access the account. Once you’ve decided which account you want, simply click through and you’ll be taken to the provider’s website.

Not sure what type of account to go for? Our Savings Decision Tree can help you decide.

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But you might have other questions. Do we provide access to all the companies operating in a given market? Do we have commercial relationships or ownership ties that might make us feature one company above another?

We commit to providing you with clear and informative answers on all points such as this, so we have gathered the relevant information on this page.