What are Lifetime ISAs?
Lifetime ISAs are a product set up by the UK government to help people either buy their first home or save for retirement. The government tops up lifetime ISAs by 25%, so for every £100 you save, it will give you an extra £25 on top.
You can't save more than £4,000 in your lifetime ISA each tax year so the biggest government bonus you can get is £1,000 a year.
As with all ISAs, lifetime ISAs are tax-free. This means that no matter how much your investments grow by, you won't pay any tax on the money you make. Our Lifetime ISA invests in stocks and shares, therefore it has good potential to grow over the long-term but the value can go down as well as up.
Things to be aware of
The money you put in our Lifetime ISA is invested in stocks and shares. This means there's good potential for it to grow over the long-term, but there is a risk that the value could go down.
The alternative is a cash lifetime ISA which earns interest like a current account does.
There is also a penalty charge for taking your money out within 12 months or not using it for your first home or for retirement. This is known as the Government Withdrawal Charge, see below for details.
See what your lifetime ISA could be worth
Choose how much you want to pay into your lifetime ISA and see how much your money could grow
This projection shows how your lifetime ISA could grow with low, medium and high performance. Remember, projections are not a guarantee of future performance and you could get back less than you pay in.
What is the lifetime ISA Government Withdrawal Charge?
It's important to have a plan for the money in your lifetime ISA as there is a penalty charge for not using it as the government intended. You'll be charged a penalty if you:
It’s worth being aware that if you end up paying a penalty, it will be more than the government will have topped your lifetime ISA up by. The penalty is 25% of everything you withdraw from the account - so 25% of the money you've saved plus the money the government has contributed. For example, if you put in £1,000 then the government will have added £250. If you withdraw the lot, your penalty would be 25% of £1,250, which is £312.50.
Therefore, if you’re not intending to buy your first home with the money or keep it in the account until you turn 60, you’re best considering opening an ISA instead.
What are climate-friendly funds?
Climate-friendly funds invest in companies that are doing more to help the environment and less to damage it. By choosing one of our funds, you’re adding your voice to a growing community of investors who refuse to fund activities that contribute to climate change.
We decide which companies to invest in based on:
A higher revenue percentage from “green” business activities, such as renewable energy production.
Lower greenhouse gas emissions in the event the company used all of its fossil fuel reserves.
A clear strategy and action plan to reduce greenhouse gas emissions.
Lower proportion of income from non-climate friendly activities such as drilling and mining.
Lower carbon emissions, including within their supply chain.
How to open a lifetime ISA with us
Choose a fund
Discover how each fund works and choose the right one for you
Our simple application process shouldn't take longer then 10 minutes
Manage your investments
Keep track of your Lifetime ISA's performance via your online account
Buy your first home
Use your Lifetime ISA towards your first home deposit
Choose one of our two climate-friendly funds, which can be switched between any time, free of charge
Invest into global companies who focus on operating in a more sustainable way
Invest for your future in a way that's aligned with your values. Global Equity invests your money into companies who are actively working towards a more sustainable business model and reducing their carbon footprint. Find out more about our climate investments
- Avg. yearly
A balanced mix of climate-friendly companies and fixed interest investments to reduce risk
Invests up to 35% of your money into climate-friendly shares and at least 65% into fixed interest assets to help reduce risk. Choose this fund if you want to invest in a responsible way while lowering risk of loss. Find out more about our climate investments
- Avg. yearly
Find out more about lifetime ISAs
Get all the information you need to feel fully informed when investing in your future.