Best place to open a Lifetime ISA?
Best place to open a Lifetime ISA?
Which type are you looking Stocks & Shares or a Cash LISA?
Personally have a Cash LISA with Moneybox and seems to be the best percentage interest out there at 1.4%
Our stocks and shares LISAs are with AJ Bell (youinvest.co.uk) which we’ve been very happy with. Really low cost if you are drip-feeding into funds, and they have a wide range to choose from unlike nutmeg or moneybox (those two have slicker apps and are better suited to novice investors, but their management fees are high)…
AJ Bell also allow you to.buy individual company shares within your LISA which I don’t remember the other two offering (someone correct if this is wrong), although to trade those you’ll be paying a decent sized trading fee (£12ish), possibly stamp duty and a market spread, so it might not make sense if you are drip-feeding or if you plan to.convert your LISA funds any time soon.
If you’re after a cash LISA, I second the Moneybox suggestion, highest interest rate currently (I believe) and a very slick and intuitive app
Stocks and Share I like nutmeg. Is very simple to use
Moneybox LISA vote here too, pretty sure it features on Martin Lewis best buy tables an all
I currently use moneybox it was the best highest paid ISA when I signed up at the time
Definitely Moneybox without a doubt. If you’re looking for something more traditional try Newcastle Building Society.
Me and my partner have our LISAs with Skipton. Its a low interest rate but no fees and a low minimum. They just released a proper mobile app too.
I have similar although do find that there regular investment charge of £1.50 even for funds eat into your profit specially if you want to drip feed. For diversification I would like 2-3 ETF but that costs a lot if you want to do small investment every month.
Are there cash LISAs with fees?
Moneybox has a fee, and although everyone reccomended it, the £1 a month thing put me off. I know its a quid, but eh.
Not for the Cash LISA it doesnt
I’m actually going to look into it if that’s the case, I wasn’t aware of this!
You’d be better investing it in an investment LISA. If you are concerned about losses then there are low risk portfolios with a number of providers. The interest rate on cash LISAs are really poor.
I’d look into Nutmeg
I advised my girlfriend to open a Hargreaves Lansdown S+S LISA.
Upon opening one, she didn’t feel comfortable investing in any stocks or funds so contributions just sat as cash.
In any case, 1 and half years and £8k invested later, she has received her £2k gov bonus and HL sent the £10k to our solicitor within 2 days- great service!
It’s not really advisable to take a risk on the stock market with an investment time horizon of < 5 years, which corresponds to many uses of a LISA for a house purchase.
The gains you can safely get from the stock market over short periods will be dwarfed by the government bonus anyway, so for an up-coming house purchase, there’s no reason to take the risk: just use a cash LISA.
Your girlfriend was right to be cautious. You shouldn’t risk the stock market for a 2 year investment. If the market had crashed, she might not have been able to afford to buy her property.
If you invested in a FTSE100 and S&P500 ETF with Vanguard your 5 year cumulative total over the last 5 years would be 31% and 75% respectively.
If you invested in Vanguard’s lowest risk (20% equity) life-strategy fund you would have a cumulative 25% growth.
And dont forget a LISA isn’t just for a house purchase.