Can we talk about LISAs (Lifetime ISAs)?


(Nathan) #22

Wouldn’t it be great to down the line be able to manage and monitor a Skipton LISA from within the monzo app,

Ideal even!


#23

I definitely second this!


(Kevyn) #24

Imagine… a proper Monzo LISA… :smiling_face_with_three_hearts:


(Peter Roberts) #25

My nutmeg LISA is currently up 3.3% since April. It was up 5% at some point. This is the way with an investment based product but in the long term I expect it to get much better returns than a cash LISA and I’m in no hurry to buy


(Ed Brooks) #26

Moneybox also offer a LISA product (and a very easy to use and friendly app) and mine is currently running a nice 3.7% return. My only small concern is the Brexit risk on the markets but, as I’m not planning to buy for a few years I think I can probably ride out any drops.


#27

I am currently using Hargreaves Lansdowne for my LISA. As people have said S&S is a higher risk and higher return (on average), but will be most beneficial to those who are looking to keep it locked away for a minimum of 3 to 5 years.

If you decided to go S&S route, I suggest reading up on passive investment and look into index trackers.

A good website is: https://monevator.com/


(Grant MacGregor) #28

Hearing there has been a few mistakes this morning regarding bonuses (overpayments etc).


(Matt C) #29

With Skipton?


(Grant MacGregor) #30

Yes - don’t know exact details though.


(Marcus Nailor, Hot Coral Detective) #31

There’s such little choice for LISAs :thinking: I have until April to decide (I don’t want to miss out on this year’s bonus :stuck_out_tongue_winking_eye:)

But I’ve never heard of Skipton or Newcastle… I am tempted by HL & Nutmeg’s S&S LISA but the I don’t love the sound of fees on investments which (obviously) aren’t guaranteed to perform well. :thinking:

Guess I should act pretty quickly and decide whether or not to go with a Cash LISA or a S&S LISA :sweat_smile:

What’s the split of people here using Cash / S&S? :smiley:

  • Cash LISA :pound:
  • S&S LISA :chart_with_upwards_trend:

0 voters


#32

I think what you need to consider is when are you looking to buy ideally?

If it is in the next 5 years I would say Cash is better

If it is over that then S&S.

I think the one thing people forget with cash isa at 1% is that it is still losing money in real terms each year with inflation. (This probably doesnt apply as much with the 25% goverment top up)


(Jordan) #33

I have a Nutmeg S&S LISA - get the 25% government bonus and your holdings can go up or down.

Skipton as far as I am aware do the best Cash LISA interest rate on the market (as of when I looked) - but it is still on a measly percentage rate.

Depending on how long you plan to invest for would sway you usually wither to a Cash or S&S.

Admittedly, my S&S LISA is currently down (Brexit and one of the worst Q4s on record hasn’t been great - but in reality it is only really eating into my government bonus and that is to be expected in the current Bear Market. I am confident that it will bounce back over the next 5 years I plan to have the LISA for.

As far as I know Nutmeg offer the lowest fees around:

0.75% on up to £100k, 0.35% beyond
Avg. investment fund cost: 0.19%
Avg. effect of market spread: 0.08%

fees on £4,000 (the most you can put in, in a year works out at about £30 for the year. Whereas you would have gained £1,000 in the government bonus - and you’d only need a 1% gain to nullify the cost completely. (These are very rough calculations).


#34

This was my logic for going to the Nutmeg one over a standard savings account.

The 1% Skipton is still a lose each year when you take into account inflation.

With Nutmeg there is a chance to increase your money by a lot more than 1% though obviously this is not guarnteed and you can make a lose


(Jordan) #35

Exactly and admittedly my Nutmeg LISA is currently down - but I fully expected some drops, and if you a dripping into your LISA those losses are mitigated against.

And even if you do lose money - you’re technically gaining through the bonus so its negligible.

My plan is 5-6 years which should just be long enough to have planned correctly with a S&S for my house deposit - the 1% was just a lose anyway.


#36

You can add £4000 and then whatever happens to that investment does not affect the fact that £1000 will be paid by the goverment. You are only paid the 25% on the amount you pay into the account


(Jordan) #37

We have had a horrific Q4 - I was up about 2/3% until then!

Good luck with the house hunting!


(Marcus Nailor, Hot Coral Detective) #38

When I say I’ve never heard of them, I mean I’ve not heard of them in the same way I’ve heard of HSBC, Natwest, etc. :smiley:

There are only 3 cash LISAs out there (currently), though one is in-branch only therefore I’m ignoring it :joy:, Newcastle Building Society & Skipton - offering 1.1% & 1% respectively.

Despite the roughness, this is a very good point!! :grin:
By the looks of it, HL charge 0.45% per year but I’d need to pick all of my investments myself - it’s not managed AFAIK.

Nutmeg looks leagues better than Moneybox in terms of fees… And it’s (optionally) a managed service - just need to pick the ‘risk’ :slight_smile:

I’ll have to look more into Nutmeg, HL & Skipton - They’re the only ones I’m seriously considering atm :smiley:

Cheers for your comments! Q4 has been pretty rough for investments :sweat_smile: I’m sure everything will recover in time though :wink:


Here’s a silly question :stuck_out_tongue_closed_eyes: Do earnings from investments in the S&S LISA count towards the £4000/yr deposit limit? :thinking:
Or can I add £4000 (+£1000 from the government) + any returns from investment? :smiley:


(Splodf) #39

Anybody using Vanguard? I see good past performance and very low fees?


#40

No but am interested to hear what people think.


(Jordan) #41

Ah! Apologies, I had heard of Skipton pre-LISA research. the main reason no “big” providers deal with the LISA is (I guess) because it just isn’t a money making scheme for them and in all honesty the LISA and Help to Buy ISA are fairly new products.

I’ve gone middle of the road, happy to lose money happy to make money - as I said above, im gaining 25% on my input anyway for me knowing my money is locked in helps me to “know” I’ve saved.

The less said about Q4 the better haha - but that is the way of investments and knowing that you’ll lose some is part of the game.

As far as I can tell, the “bonus” is paid post input not as part of. So as far as I am aware you could go £4,000 in plus the 25% (i.e. £1,000) plus any gains - although do not know this for fact!