Best Lifetime Isa providers: How Lisas work and top platforms

On Oct 9, 2025

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A Lifetime Isa – or Lisa – gives you the ability to save up to £4,000 a year, with the Government topping up contributions by 25 per cent. It’s designed to help you save for two scenarios only: buying your first home and retirement.

You can potentially bag a total of £32,000 from the Government if you max out your contributions each year between the age of 18 and 50, the age at which you stop earning the Lifetime Isa bonus.

The Government bonus sounds like a big giveaway, but there are a few things to consider before opening a Lisa.

First, Lisas have sparked criticism amid fears they will encourage younger savers to shun pensions. For many, especially those with a work pension where their employer matches their contributions, pension saving is still a better deal and their Lisa should be supplementary to that.

Lisas have also been under fire because the property you buy must cost less than £450,000. This level has stayed the same since the Lisa’s introduction in 2017, despite house prices increasing over that time.

Finally, there is a financial penalty if you withdraw money for any reason other than those stated.

But in general, Lisas are a useful option for a specific group of people – those under 40 who are saving a deposit for a first home and meet the qualifying criteria.

Here we look at how Lisas work, what types of products are available, and their benefits and pitfalls. We also examine the best Lifetime Isa providers on the market, giving you options for both a cash Lisa and a stocks and shares Lisa.

What is a Lifetime Isa?

A Lifetime Isa is a type of Individual Savings Account that’s specifically designed to help younger people save for their first home or for retirement.

The £4,000 you can save each year in a Lisa forms part of your overall £20,000 Isa allowance.

The main draw of Lisas is the 25 per cent Government bonus on contributions. However, the accounts have stricter eligibility criteria and rules around what you can use your money for than other Isas.

Lifetime Isa eligibility

Everybody aged 18-39 can open a Lifetime Isa.

This includes those who already own a home and are saving into a pension, though the money can’t be used for a house purchase unless you are a first-time buyer.

You can pay into a Lisa until you’re 50, meaning savers can potentially earn a total of £32,000 from the Government by stashing away £4,000 a year from the age of 18.

Your account stays open after you turn 50, and your savings can continue to earn interest or achieve investment returns, but you can’t make more contributions.

If you are using a Lisa for retirement, you can only withdraw money once you reach the age of 60.

If you’re buying a home with someone else who meets the criteria, you can both use the Lifetime Isa for the purchase – giving you more bonus.

Are there any Lifetime Isa early withdrawal penalties?

You can only use the money when buying a first home worth up to £450,000, or for retirement when you reach 60.

If you need to withdraw for other reasons, you’re hit with a stiff 25 per cent penalty affecting your own contributions and not just the Government bonus.

There’s no withdrawal penalty if you’re terminally ill with less than 12 months to live.

What else should you know about Lifetime Isas?

Both cash Lifetime Isas and stocks and shares Lifetime Isas are available.

You can hold multiple Lifetime Isas, but you can’t deposit money into more than one in each tax year.

The £4,000 maximum you can pay into a Lifetime Isa counts towards your annual £20,000 Isa allowance.

If you have a Help to Buy Isa and a Lifetime Isa, you can only use the bonus from one to buy a house – but note that Help to Buy Isas are closed to new savers.

Saving for a home: A Lifetime Isa is a good option for first-time buyers

What are the rules when using a Lisa to buy a home?

In our view, Lifetime Isas are best for first-time buyers who are definitely going to buy a property in the next few years.

If you’re considering opening a Lifetime Isa for this reason, you should be aware of the rules and eligibility criteria.

For instance, you must be a first-time buyer. You can also buy with another first-time buyer and both use a Lisa and its bonus.

It’s possible to buy with someone who isn’t a first-time buyer and use your Lisa, although they can’t use their own Lisa if they were to have one.

The property must cost less than £450,000 and the Lisa needs to be open for at least 12 months before you can use it for the…