It's more than a Lifetime ISA
It's a place to make your own.
Save for your first home with the UK’s biggest Lifetime ISA provider
Save £4,000 to get £1,000 free every year
Choose from a Cash Lifetime ISA or Stocks & Shares Lifetime ISA (capital at risk)
Govt. withdrawal charge may apply. ISA and tax rules apply.
What is a Lifetime ISA?
A Lifetime ISA (LISA) is an individual savings account that can help you buy your first home or save for retirement. There are two types: a Cash Lifetime ISA, and a Stocks & Shares Lifetime ISA. A Cash Lifetime ISA lets you earn interest on your money, while a Stocks & Shares Lifetime ISA invests your money in the stock market (capital at risk).
How does the Lifetime ISA work?
Get a free 25% government bonus on every pound you save. You can save or invest up to £4,000 each tax year - that's up to £1,000 free!
As it's a type of ISA, all savings are tax-free. Tax treatment depends on individual circumstances and may be subject to change in the future.
Your £4,000 annual Lifetime ISA allowance is included in your total £20,000 annual ISA allowance.
What can the Lifetime ISA be used for?
You can use the Lifetime ISA to buy your first home (up to £450,000) anywhere in the UK, but must have had the account open for at least one year before you withdraw money to do this. The time starts from your first deposit.
To open a Lifetime ISA for your first home, you must be aged 18-39.
You can also pay into your Lifetime ISA until you turn 50 and withdraw your savings for retirement at age 60. In the ten years inbetween, you'll continue to accrue cash or investment gains/losses, depending on the type of LISA it is.
If you withdraw money for any reason other than buying your first home (up to £450,000) or for retirement, you'll pay a 25% government penalty on the amount you withdraw. This means you'll get back less than you've put in.
Start your Lifetime ISA journey today
Choose between our Cash Lifetime ISA and get a market-leading interest rate on top of your tax-free savings and government bonus, or our Stocks & Shares Lifetime ISA to invest and grow your first home savings over time.
We'll be here from your first step to your doorstep.
Our trusted partner First Mortgage – one of the UK’s longest-established, fee-free mortgage brokers – takes the lead for your mortgage application. With expert advice and access to 12,000+ deals from over 90 lenders, they’ll handle everything – from securing the right mortgage for you, helping with paperwork and even arranging protection policies for peace of mind.
Provided by First Mortgage Ltd.
Your home may be repossessed if you do not keep up repayments on your mortgage.
For insurance business, First Mortgage offers products from a choice of insurers.
Lifetime ISA questions & answers
Read more information about the Lifetime ISA. If you have any questions, please chat to us in the app or email us via support@moneyboxapp.com.
What is a Lifetime ISA?
The Lifetime ISA (LISA) helps you save for your first home or retirement. Pay in up to £4,000 a year and get a 25% government bonus – up to £1,000 a year. A 25% government penalty applies if you withdraw for any other reason before age 60.
A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement after age 60 (except in cases of terminal illness). Your account also needs to be open for 12 months before you can withdraw penalty-free for a property purchase. LISAs are considered ‘open’ once you’ve made your first contribution.
With Moneybox you can choose between a Cash Lifetime ISA, which offers an interest rate of 5.80% AER (variable) for new customers, made up of a 2.80% AER variable interest rate and a 3.00% introductory bonus rate for your first year, or our Stocks & Shares Lifetime ISA, which allows you to invest your savings in the stock market. Remember, as with all investing, the value of your investments can go up and down, and you may get back less than you invest.
What is the difference between a Cash and Stocks & Shares Lifetime ISA?
We offer two types of Lifetime ISA:
A Cash Lifetime ISA earns interest on cash held in the account, like savings account. The interest rate for the Moneybox Cash LISA is 5.80% AER, made up of a 2.80% AER (variable) interest rate and a 3.00% introductory bonus interest rate for your first year.
A Stocks & Shares Lifetime ISA invests your money in funds. which can offer higher returns over five or more years – though the value can go down as well as up, so you may get back less than you invest.
When are LISA bonuses paid out?
Bonuses are paid monthly, based on your contributions the previous month. HMRC doesn't use a set date, but it's usually in the last week. Bonus windows run from the 6th of one month to the 5th of the next. Track a pending bonus in the Moneybox app under Discover > Tools > Lifetime ISA Bonus.
How can I use my Lifetime ISA to buy my first home?
Our blog post outlines the full process of withdrawing from a Lifetime ISA
You can use the amount saved in your Lifetime ISA towards your first home if:
The property costs £450,000 or less.
You buy the property at least 12 months after you open a Lifetime ISA. Your LISA is considered open from the date of your first contribution into the account.
You use a conveyancer or solicitor to act for you in the purchase. Moneybox will pay the funds directly to the conveyancer or solicitor.
You’re buying with a mortgage (using a buy to let mortgage is not permitted).
You have never owned a property before. This includes properties in the UK or in any other country. If you owned a property, or a share of one, through inheritance this counts as owning a property.
In addition to the above, you can find the full eligibility rules on the HMRC website.
If you’re unsure if your house purchase qualifies for a penalty-free LISA withdrawal, we’d recommend speaking with an appropriately-qualified conveyancer.
Once you’re ready to buy, just head to Settings > Withdraw > LISA at least a month before you expect to complete to provide us with your solicitor’s details and get the process started!
Free, expert mortgage support
We help you buy your first home from the first step to the doorstep, while our trusted partner First Mortgage searches over 12,000 mortgage deals to secure the right one for you.
Provided by First Mortgage Ltd.
Your home may be repossessed if you do not keep up with repayments on your mortgage.
Moneybox guide to Lifetime ISAs
Cash ISA vs Lifetime ISA
Find out which is best for you based on your individual goals.
Which Lifetime ISA is right for you?
Here’s our quick rundown of the different types of Lifetime ISAs.
Lifetime ISA vs Help to buy ISA
Which is best for first time buyers?
How to open a Lifetime ISA
Lifetime ISAs can help you reach your goal faster - here's how.
It's important to know
A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid in.
When investing, your capital is at risk. All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest.
Tax treatment depends on individual circumstances and may be subject to change in the future.
The Lifetime ISA is treated differently for tax purposes when compared to a pension. If you decide to opt out of your workplace pension and instead pay into a Lifetime ISA, you will not benefit from any employer-matched contributions into your LISA and it may affect your current and future entitlement to means-tested state benefits. If considering the Lifetime ISA for the purposes of retirement, we recommend you seek independent financial advice.
Your home could be repossessed if you do not keep up repayments on your mortgage.