Top 10 Lifetime ISA Providers UK 2025
What is a lifetime ISA and will it help you buy your first home?
If you’re a student, you’re likely not thinking about buying your first home just yet.
And why would you? You can probably just about make your rent payments each month with the minimum maintenance loan…
Real talk though: thinking about the future can be important so that you’re able to get your finances in check, maybe open up a savings account and put some money aside whenever possible (and try not to take it back out).
It’s hard to focus on when you’re in the midst of deadlines, the cost of living crisis, rubbish student accommodation, and trying to just survive in this world, but managing your money and thinking one step ahead can help you in the long-term.
This is where a lifetime ISA might come in handy — helping you to save and you’ll get a government bonus on top of your savings. It’s almost like getting free money.
But, in a world full of technical jargon, what really is a lifetime ISA and what are the top 10 lifetime ISA providers? Read on, we’ll tell ya.
Sometimes, you might need to borrow money to help get you by, so we’ve put together everything you need to know about loans, credit, and borrowing money. If you’re thinking about getting a credit card, we’ve got the need-to-knows about how credit cards work.
Jump to:
- What is a lifetime ISA
- Top 10 lifetime ISA providers
- Can you have a lifetime ISA and a cash ISA?
- How to open a lifetime ISA
What is a lifetime ISA?
An ISA (Individual Savings Account) is a bank account that lets you save tax-free cash each year.
A lifetime ISA (LISA) is the same as an ISA, but the money you put into it can only be used to buy your first home, or for later in life (if you’re over 60 or terminally ill).
LISAs were created by the government to help people get their foot onto the property ladder, by adding an additional 25% on top of your savings when you go to buy your first home. Thanks, Gov!
But as usual, nothing is as clear-cut as it seems.
Things to consider when opening a LISA
As with most things in life, it’s important to make sure that opening a lifetime ISA is appropriate for you and that you’re aware of any fine print, and terms and conditions that might catch you out later down the road.
Here are some things to consider when opening a lifetime ISA:
- You must be at least 18 years old (and under 40) to open a lifetime ISA
- You can only put in up to a maximum of £4,000 a year into your account
- You can only use the money in your LISA for the following
- You’re buying your first home
- You’re aged 60 or over
- You’re terminally ill and have less than 12 months to live
- When buying your first property, the maximum house value you can put your LISA towards is £450,000
- You have to live in the house you buy, you can’t buy a property to rent out
- You can combine your LISA with someone else’s if you’re both buying the house (e.g. your partner)
- If you take any amount of money out of your LISA early, you’ll be charged a 25% fee — so think carefully before withdrawing if it’s not for your first home
Top 10 lifetime ISA providers
We’ve got the top 10 LISA providers to help choose the right one for you.
| Provider | Minimum investment | Rate | Do they accept transfers from other ISAs? | How to open and manage | Interest paid |
|---|---|---|---|---|---|
| Moneybox | £1 | 4.8% (including 1% fixed 1 year bonus) | Yes but only if you haven’t had a Moneybox LISA before | App | Monthly |
| Tembo | £1 | 4.75% | Yes but only from existing LISAs | App | Monthly |
| Bath BS | £1 | 3.69% | No | Online or at a branch | Annually |
| Paragon Bank | £1 | 3.51% | Yes but only from existing LISAs | Online | Annually |
| Beehive Money | £1 | 3.3% | Yes | App | Annually |
| Nottingham BS | £1 | 3% | Yes but only from existing LISAs | Online | Annually |
| Newcastle BS | £1 | 2.85% | Yes but only from existing LISAs | Online | Annually |
| Skipton BS | £1 | 2.8% | Yes | Online | Annually |
Stocks and Shares lifetime ISA Providers
Stocks and Shares lifetime ISAs are similar to a stocks and shares ISA — your money is put into the market, rather than leaving as cash. You’ll get the same bonuses as a Lifetime ISA, but there’s more risk because you’re investing the money, rather than straight up saving.
| Provider | Minimum opening amount | Fees |
|---|---|---|
| AJ Bell | Minimum deposit £500 or set up £25 per month direct debit | 0% to 0.25% |
| Hargreaves Lansdown | £100 or £25 per month direct debit | 0% to 0.25% |
Can you have a lifetime ISA and a cash ISA?
Yes, you can have a lifetime ISA and a cash ISA at the same time. In fact, you can have multiple ISAs open at the same time, as long as they’re different types.
Each tax year, you can save a maximum of £20,000 across all your ISA accounts, or just in one account. However, a LISA only allows you to put in up to £4,000 a year, but you can put the remaining £16,000 in a cash ISA, if you have one (and have that much cash, lucky you).
How to open a lifetime ISA
Opening up a LISA is pretty straightforward. However, you’ll have to meet the eligibility criteria first.
- Be aged between 18 and 39
- Be a resident of the UK
If you meet the criteria, you can apply for a lifetime ISA. Once you’ve chosen a lifetime ISA provider, they’ll have steps for you to follow when applying. Usually you’ll need to provide your National Insurance number, date of birth, and proof of ID.
Once you’ve set up your LISA, you’ll need to make your first payment before you’re 40. Hopefully you’re not waiting that long…
Remember, you can only put in up to £4,000 a year in a LISA, so if you’re wanting to put in more, a cash ISA might be a better choice — or you can open both.
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