A Lifetime ISA (also known as a LISA) is a long-term Individual Savings Account (ISA), introduced in 2017. A Lifetime ISA offers all the attractive tax benefits of a standard ISA, but with the additional bonus of a 25% boost provided by the government. The LISA was introduced to help first-time buyers and those looking to save for retirement.
In this article, we take a look at the providers currently offering a Lifetime ISA and compare the best and cheapest stocks and shares and cash Lifetime ISAs.
We recommend you read the full article but for those looking for a quick summary, our top 3 picks are below.
What is the best Lifetime ISA? - Our top 3 picks
| Lifetime ISA Type | Provider | Good for | Interest Rate | Cost | Min Investment |
| Cash and Stocks & Shares Lifetime ISA | AJ Bell Dodl* | Flexibility & Market-leading rate on cash - Can hold money in cash or invest in Stocks & Shares | 3.80% | £0.00 for holding cash
0.15% annual fees for investments (Min £1 per month) |
£1 |
| Stocks & Shares Lifetime ISA | J.P. Morgan Personal Investing formerly Nutmeg) | Passive investors - Those who are happy for someone else to manage investment decisions | N/A | 0.75% | £100 |
| Cash Lifetime ISA | Plum* | Tools & Guidance - Those looking for a great return on cash. | 5.65% ³ | £0.00 | 1p |
Best Cash Lifetime ISA providers - Comparison table
Below we provide a list of the best Cash Lifetime ISA rates available in the UK.
| Cash LISA Provider | Minimum payment | Interest rate (AER) |
| Plum* | 1p | 5.65%³ |
| Moneybox | £1 | 5.55%² |
| Tembo* | £1 | 4.30%4 |
| AJ Bell Dodl* | £1 | 3.80%¹ |
| Paragon Bank | £1 | 3.51% |
| Bath Building Society | £1 | 2.60% |
| Skipton Building Society | £1 | 2.05% |
| AJ Bell* | £250 / £25 per month | 1.75% |
¹ The AJ Bell Dodl Lifetime ISA is an investment ISA; however, it pays 3.80% interest on uninvested cash
² Moneybox rate is 2.80% base rate (variable) plus a fixed one-year bonus interest rate of 2.80%.
³ Plum's rate is 3.11% base rate (variable) plus a fixed one-year bonus interest rate of 2.40%.
⁴ Tembo rate is 3.80% base rate variable plus a fixed 12-month bonus interest rate of 0.50% for new customers
Cheapest Stocks & Shares Lifetime ISAs - Comparison table
If you want to manage your own investments and are looking for the cheapest Lifetime ISA then AJ Bell Dodl* charges an annual fee of just 0.15%, with a minimum fee of £1 per month. It offers a simplified user experience via its mobile app and investors can start from as little as £100 or £25 per month. Additionally, AJ Bell Dodl pays 3.80% AER variable interest on uninvested cash, which means you can start earning a market-leading interest rate while exploring its streamlined range of investment options. You can read more in our independent AJ Bell Dodl review.
Alternatively, Hargreaves Lansdown* has an annual management charge of just 0.25%. It offers a huge range of investment funds to choose from and has a minimum investment of £100 or £25 monthly to get started. Therefore, Hargreaves Lansdown could be a good option for investors with a smaller sum of money who still want a wide investment choice. Another alternative is EQi which offers a Lifetime ISA with no minimum investment and an annual charge of 0.25% but the investment choice is much more restricted.
By contrast, J.P. Morgan Personal Investing offers a fully managed service where they run a portfolio for you with an annual charge of 0.75%. A cheaper alternative is to choose a fixed allocation portfolio with a fee of 0.45%. With both options there are additional underlying investment fund and market spread fees as shown in the table above. For further information on J.P. Morgan Personal Investing and whether they are the right investment for you, read our J.P. Morgan Personal Investing Review.
| Stocks & Shares LISA Provider | Minimum payment | Annual Charge |
| AJ Bell Dodl* | £100 / £25 per month | 0.15% (Minimum £1 per month) |
| AJ Bell* | £250 / £25 per month | 0.25% |
| EQi | £1 | 0.20% (capped at £10 per quarter) |
| Forester | £20 | 1.5% of fund value, reducing to 1% after 10 years |
| Hargreaves Lansdown* | £100 / £25 per month | 0.25% on funds up to £1m
0.10% on funds between £1m and £2m 0.00% on funds over £2m |
| Tembo* | £1 | 0.35% annual management fees plus fund fees totalling 0.17% per year. |
| J.P. Morgan Personal Investing (formerly Nutmeg) | £100 | 0.75% fully managed (reduces to 0.35% for investments over £100k) 0.45% fixed allocation (reduces to 0.25% for investments over £100k) plus there is an underlying investment fund and market spread fee of 0.18% + 0.04% for fully managed and 0.16% + 0.04% for fixed allocation |
| OneFamily* | £25 per month / £250 lump sum | 1.10% annual management charge |
| Moneybox | £1 | £1 monthly charge (first 3 months free) 0.45% platform fee Fund provider fees cost 0.05%-0.74% |
List of Cheapest Lifetime ISA providers and the Best Lifetime ISA rates
Below we have listed the full range of Lifetime ISA providers including Stocks & Shares Lifetime ISAs and Cash Lifetime ISAs. We have included the key details for each of the providers, including the minimum amount needed to open an account as well as the interest rates on offer and any fees if applicable.
AJ Bell Dodl*
AJ Bell Dodl offers a Stocks & Shares Lifetime ISA where investors can choose a number of funds, investment themes and individual shares. AJ Bell Dodl also pays 3.80% AER variable interest on uninvested cash which means you can start earning a market-leading interest rate while exploring its streamlined range of investment options. When you are ready to invest, there are no trading fees with AJ Bell Dodl and everything is handled via a user-friendly mobile app. There is an annual management fee of just 0.15%, with a minimum fee of £1 per month. Investors can start with as little as £100 or they can set up a direct debit for £25 a month.
AJ Bell*
AJ Bell offers a Stocks & Shares Lifetime ISA that allows deals in funds from £1.50 per deal and shares from £5.00 per deal. It offers an easy-to-manage account accessible 24/7 through the app or online with the ability to ask for help from its investment experts. AJ Bell does however charge an annual fee of 0.25%. There is a high minimum investment of £250 if paid by a lump sum, or alternatively, a direct debit can be set up for £25 a month.
If you choose to invest in a cash only LISA with AJ Bell you can currently earn 1.75% interest.
EQi
EQi, formerly known as Selftrade, offers a Stocks & Shares Lifetime ISA and allows you to invest in a restricted range of funds which have been selected by Square Mile. Its annual charge for holding your investments is 0.20% (capped at £10 per quarter) making it one of the cheapest in the market, but it does charge you £10.99 for buying and selling shares. Its investment choice is more limited than other Stocks and Shares Lifetime ISA providers, and its website is tricky to navigate.
Hargreaves Lansdown*
Hargreaves Lansdown charges 0.25% for holding DIY investments in a Lifetime ISA up to £1m. The charge reduces to 0.10% for between £1m and £2m and there is no charge for fund values over £2m. There are additional charges for dealing in ETFs, investment trusts (but not unit trusts) and shares on top of this. Hargreaves Lansdown allows you to invest in both shares in the UK and Internationally or invest in over 2,500 funds. However, if stocks and shares investing isn't for you, Hargreaves Lansdown does allow you to hold cash (effectively making it a Lifetime Cash ISA) however you will not earn any interest. This may be a good flexible option for those that plan to invest in stocks and shares in the future, but do not want to have to switch providers. Hargreaves Lansdown has a minimum initial investment of £100 or £25 per month.
Hargreaves Lansdown also provide a handy Lifetime ISA guide and calculator which will work out your potential bonus for you.
Moneybox
Moneybox charges a £1 monthly fee for its Stocks & Shares Lifetime ISA (free for the first 3 months). Moneybox also charges an additional platform fee of 0.45% as well as provider costs of between 0.05% and 0.74%. The fund provider fees are incorporated within the daily fund valuation, so you will not see this charge leave your account. You can invest from as little as £1 and can invest by topping up your purchases via the Moneybox app.
You can also open a Moneybox Lifetime Cash ISA and it offers a rate of 5.55% (which includes a fixed one-year bonus interest rate of 2.80%). There are no monthly fees, and you can invest from as little as £1 via the Moneybox app.
Bath Building Society
Bath Building Society offers a Cash Lifetime ISA, which you can manage online, in branch or by mobile app. You can open an account for as little as £1, and it offers an interest rate of 2.60%.
J.P. Morgan Personal Investing (formerly Nutmeg)
J.P. Morgan Personal Investing is a robo-adviser that offers four types of investing portfolios; fully managed, fixed allocation, smart alpha portfolios and socially responsible. The fully managed, smart alpha portfolios and socially responsible portfolios are charged at 0.75% and fixed allocation portfolios are charged at 0.45%. These reduce to 0.35% and 0.25% respectively on investment values over £100k. To invest, J.P. Morgan Personal Investing requires a minimum of £100 to open an account.
OneFamily*
OneFamily offers investors the choice of three portfolios; 'Cautious', 'Balanced' or 'Adventurous'. The cautious portfolio has around 35% invested in global shares, while the balanced portfolio has around 65% and the adventurous portfolio has 100% invested in global shares. Investors can switch funds at any time and it charges an annual account fee of 1.10%. OneFamily has a minimum investment of £100 or regular investment of £25 per month. It is worth considering the purpose of your Lifetime ISA before opening with OneFamily as its LISA is designed for the long term so may be better suited to retirement, unless you were looking to buy a property in 5 years' time.
Paragon Bank
Paragon bank launched a cash Lifetime ISA in November 2019 and offers a variable interest rate of 3.51%. Accounts can be opened from just £1 and must be completed online. Once opened, the account can be managed online, by post or telephone. Paragon bank allows you to transfer from other Lifetime ISAs, and there are no additional account fees.
Plum*
Plum launched a cash Lifetime ISA in May 2025 and offers a rate of 5.65% AER (Variable), which includes a bonus of 2.54% if kept for 12 consecutive months. Accounts can be opened from just 1p and must be completed via the app. Plum allows you to transfer from other Lifetime ISAs and the transfer-in rate is 4.01% (assuming you do not cancel your Plum LISA within the first 12 months).
Skipton Building Society
Skipton Building Society offers an interest rate of 2.05% that can be earned daily but is not paid until the anniversary of the account opening date. They advise that due to interest rates being variable they will notify you if the interest rate is due to drop and you have less than £100 in your account. Skipton Building Society allows a Lifetime Savings Account to be opened with just £1.
Tembo*
The Tembo Lifetime ISA (Formerly known as Nude) provides both a Cash Lifetime ISA and a Stocks and Shares Lifetime ISA via its smartphone app. Those looking to invest will pay a 0.35% annual management fee. The Tembo Cash Lifetime ISA currently pays a rate of up to 4.30% AER (made up from a base rate of 3.80% variable and a 12-month fixed 0.50% bonus). The minimum deposit required to open an account is just £1.
Summary
At present, the overall best Lifetime ISA has to be AJ Bell Dodl* as it offers a rate of 3.80% on uninvested cash as well as a low annual fee of just 0.15% for those happy to invest in the stock market. Alternatively, if you prefer someone to manage your LISA for you then the J.P. Morgan Personal Investing Lifetime ISA (fully managed option) is the best value.
The best cash Lifetime ISA usually boils down to the provider that offers the best interest rate. Plum* currently offers the best interest rate, currently 5.65% and this includes a bonus rate of 2.54% which is applicable for the first year. Moneybox offers the next best rate, currently 5.55%, which includes a bonus rate of 2.80%. Tembo* offers the next-best rate of 4.30% (which includes a 12-month new customer bonus of 0.50% fixed). It may be a good option for those buying their first home as it is a specialist mortgage broker that provides additional guidance for first-time buyers.
Don't forget that if you withdraw money from any Lifetime ISA before age 60 for any reason other than buying a qualifying first home, you will face a strict 25% government withdrawal penalty on the total amount withdrawn, which means you'll lose the government bonus but also some of your own original savings that you paid into the LISA.
When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.
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