Lifetime ISA
Get investing in our low-cost stocks and shares Lifetime ISA
Open a Lifetime ISA View Lifetime ISA charges
Important information: A stocks and shares Lifetime ISA isn't for everyone. If you withdraw money before age 60, except to purchase your first home, you'll pay a government withdrawal charge of 25%. This may mean you get back less than you put in. Also, if you choose to save in a Lifetime ISA instead of enrolling in, or contributing to, your workplace pension scheme, you'll miss out on the benefit of your employer’s contributions. Your current and future entitlement to means-tested benefits may also be affected. Read more on LISA risks and the LISA key features document.
LISAs at a glance
A stocks and shares Lifetime ISA (LISA) is tax free, and tops up what you pay in with a generous 25% bonus from the government. Just remember, you can only take money tax-free out of a stocks and shares LISA in two circumstances: to buy your first home, or from age 60. Otherwise, you'll pay a 25% government withdrawal charge.
25% government bonusSave the maximum £4,000 a year, and you’re looking at £1,000 of free money, annually.
You decide how your money is investedAs with any investment, this should be done with a long-term mindset, ideally five years or more. If you’re looking to access your money within five years or less, then a cash Lifetime ISA may be more suited to you.
LISA transfers for over 40sYou can only open a Lifetime ISA if you're aged 18–39, but you can keep paying in, and receiving the bonus, until you turn 50. We’re also one of the first providers in the industry to offer Lifetime ISA transfers for over 40s.
Start investing from just £25Once you've funded your account you’re ready to go. Set up a £25 monthly Direct Debit, make a one-off £250 payment, or transfer an ISA for free.
Lifetime ISA rules let you pay in up to £4,000 each tax year. You’ll get a new allowance every tax year – but what you don’t use doesn’t roll over.
Invest up to £4,000 a year
Why choose AJ Bell as your Lifetime ISA provider?
Low costDeal from £1.50 and hold your investments for less than many other Lifetime ISA providers. View our LISA charges
Easy to manageAccess your account online 24/7, and deal on the go with our mobile app
Regular investingPut in as little as £25 per month
Customer supportWe’re here to help with a UK-based customer services team, webchat and email support
Investment ideasNeed a hand choosing your investments? Get suggestions from our specialists, or even let them do the hard work for you with our investment ideas
0.25% annual account charge
You’ll never pay more than 0.25% to hold investments in your LISA account. And you can buy and sell investments from as little as £1.50.
Accessing your Lifetime ISA
There are two circumstances when you can withdraw money from a stocks and shares LISA without paying its 25% government withdrawal charge:
When buying your first home – you can use some, or all, of your LISA to buy a home up to the value of £450,000, as long as you’re a first-time buyer and buying with a mortgage. If you’re buying with a partner, both of you can save with a Lifetime ISA and receive the bonus.
From age 60 onwards – after the age of 60, you can withdraw your entire LISA tax-free. You can continue paying in (and earning the bonus) until you turn 50, even if you've used your LISA to buy your first home.
Also, if you have a terminal illness, you can withdraw all the money in your LISA account without paying the 25% government withdrawal charge (which can leave you with less than paid in).
It’s a good idea to make sure you have a cash fund you can access in an emergency. That way, you won't need to access your Lifetime ISA early and pay the 25% withdrawal charge.
Is a stocks and shares Lifetime ISA right for me?
With its generous government bonus, a stocks and shares LISA (sometimes called an Investment LISA) is a great way to invest for a first home or later life. But if you plan to access the money for any other reason, you may want to consider investing into a Stocks and shares ISA instead.
If you’re looking to save for retirement, you may want to consider a LISA alongside a pension. You should carefully weigh up whether you want to invest in a LISA instead of enrolling in a workplace pension scheme if it means losing the benefit of employer contributions. Your current and future entitlements to mean-tested benefits could be affected too.
Which? Recommended Provider seven years running, 2019–2025
Help to Buy ISA and other transfers
If you already have a Help to Buy ISA, you can transfer it to our stocks and shares Lifetime ISA, and you'll get the 25% government bonus on it. Find out more about Help to Buy ISA transfers.
Hold a Child Trust Fund for your child? Once they turn 18, they can transfer it into a Lifetime ISA to help them save for their first home, or for retirement. More about transferring a matured Child Trust Fund.
You can also transfer in a Stocks and shares ISA or a Cash ISA and get the 25% government bonus. Keep in mind that transfers from a Stocks and shares ISA, Cash ISA or matured Child Trust Fund will count towards your annual Lifetime ISA payment limit.
Managing your Lifetime ISA account
Mobile app – manage your LISA portfolio anywhere with our iOS and Android apps
Wide choice – pick from a vast variety of investment options, including over 2,000 funds, and shares across 25 markets
Regular investing – grow your Lifetime ISA gradually by putting in as little as £25 a month with our regular investment service
Live UK prices – deal when it's right for you with live UK pricing
Free investment magazine – all AJ Bell customers enjoy full access to Shares magazine
What can I invest in?
With an AJ Bell Lifetime ISA, how you choose to invest and manage your portfolio is down to you. We offer a wide range of shares, funds, investment trusts, ETFs (exchange-traded funds) and more.
Our dealing charge starts from just £1.50, and you’ll never pay more than £5.00 per online deal.
Funds
Choose from more than 2,000 funds, helping you build a diversified portfolio.
Shares
Invest in thousands of companies on UK and international markets.
Investment trusts
Pick from more than 450 investment trusts across a broad range of sectors.
Exchange-traded funds
Choose from a range of ETFs which track your choice of index or benchmark.
Three ways we can help you invest in a LISA
Good to know about Lifetime ISAs
Should I choose a LISA or a stocks and shares ISA?
It all depends on what you’re investing towards. A LISA pays you a 25% bonus on what you put in, but you can access your savings penalty-free only when buying your first home, or after the age of 60. (Otherwise, you’ll pay a 25% government withdrawal charge.)
A stocks and shares ISA doesn’t top up your money, but it does let you withdraw it any time without paying a charge – making it more of a general-purpose nest egg.
The allowances are different, too. In a stocks and shares ISA, you can pay in up to £20,000 every tax year. In a stocks and shares LISA, that yearly limit is lower, at £4,000 (which also counts towards your overall £20,000 ISA allowance).
Can I transfer a cash LISA to a stocks and shares LISA?
Yes – you can move a cash LISA into a stocks and shares LISA, like the one offered by us here at AJ Bell. With us you can also transfer in cash ISAs, stocks and shares ISAs, Help to Buy ISAs, and matured Child Trust Funds. Learn more about transferring to us.
Can I open a LISA and stocks and shares ISA in the same tax year?
Yes, you can. Just remember that your £4,000 LISA allowance also counts towards your overall ISA allowance, which is £20,000. And in subsequent tax years, you can continue to hold, and pay into, both your LISA and your stocks and shares ISA.
Invest up to £4,000 into an AJ Bell Lifetime ISA today
Learn more about our LISA
We'll help you get investing
For over 25 years, AJ Bell has made investing simple and affordable. We’re Which? recommended, seven years running, with an award-winning range of accounts.
Can we help?
If you’d like more information about AJ Bell’s accounts and services, get in touch with our friendly customer services team - we’re here to help.