ISAs UK: Types, the Allowance, Transfers and Which ISA to Use

Choosing a Lifetime ISA: Cash or Stocks and Shares, and What to Compare

How to choose a Lifetime ISA: cash or stocks and shares for a first home or later life, what to compare between providers (rate against the Bank of England averages, charges, transfers in), how to open one, and moving a LISA to another provider without the charge.

Savings and investment information is for educational purposes only. The value of investments can go down as well as up. Cash savings up to £85,000 per person per institution are protected by the FSCS.

Every Lifetime ISA gets the same government bonus, so the choice of provider comes down to what the account holds and what it costs. This page doesn’t list named accounts: it sets out how to choose one.

Cash or stocks and shares

A Lifetime ISA can hold cash, stocks and shares, or both, depending on the provider.

Your goalUsually suitsWhy
A first home in the next few yearsCashThe balance can’t fall just before you buy
A first home further offEither, or cash nearer the timeInvestments have longer to recover from a fall; moving to cash as the purchase gets close protects the deposit
Later life, from age 60Stocks and sharesDecades to invest, with the risk that it falls in value

Investments can fall as well as rise, and the FSCS doesn’t compensate for falls in value. See cash or stocks and shares ISA for the trade-off in more detail.

What to compare

  • Cash Lifetime ISAs: the rate. Compare it with the Bank of England’s averages for cash ISAs: 2.01% for a variable rate cash ISA in August 2026. Check whether part of it is a bonus rate for a limited time.
  • Stocks and shares Lifetime ISAs: the charges. Look at the platform or account charge and the charges on the funds you’d hold, in pounds a year for your balance as well as in percentages.
  • Transfers in. If you want to move an existing Lifetime ISA, or money from another ISA, check the provider accepts transfers in.
  • How you pay in and manage it. Whether you can pay monthly, in lump sums, or both, and whether it’s app-only.

The bonus itself is the same everywhere: The government adds a 25% bonus to what you pay in, up to £1,000 a year.

Opening one

You must be 18 or over but under 40 to open one, and make your first payment before you're 40. You’ll need your National Insurance number, and you apply directly with the provider. You can pay into only one Lifetime ISA a tax year, up to £4,000, and that counts towards the allowance.

Moving to another provider

You can transfer a Lifetime ISA to another Lifetime ISA at any time with no charge, and the bonus goes with it. Use the new provider’s ISA transfer process rather than withdrawing: a withdrawal for any reason other than a first home, age 60 or terminal illness costs the charge (ISA transfers).

Sources

  1. GOV.UK: Lifetime ISA
  2. HMRC: Transfer an ISA if you're an ISA manager
  3. Bank of England: quoted household deposit rates

Figures and rules on this page also come from these sources, last checked on 30 September 2026. How we check facts.