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Lifetime ISA

Charges reduced

Get a 25% government bonus with this year’s £4,000 Lifetime ISA allowance

Open a Lifetime ISA Top up a Lifetime ISA

Important information: investing for longer increases the likelihood of positive returns. Over a period of five years or more, investments usually give you a higher return compared to cash savings. But investments can go down as well as up in value, so you could get back less than you put in.

This isn’t personal advice – please ask us for advice if you’re not sure which investments are right for you. Lifetime ISA tax rules can change and benefits depend on your circumstances. You can withdraw money from a Lifetime ISA to buy your first home, or for later life at age 60. Other withdrawals will usually mean a 25% government charge, so you could get back less than you put in. Using a Lifetime ISA for later life complements a pension.

In this video, we explain the key benefits of using a Lifetime ISA and how you can invest for your future or first home.

A voiceover talks over imagery. The imagery compliments what is being said, but doesn’t provide any additional information.

“The Lifetime ISA offers an exciting and flexible way to save for your first home or later life.

If you're aged between 18 and 39, you can open a Lifetime ISA and get up to £1,000 from the government each year.

So, how does it work?

You can put in up to £4,000 a year, and the government will add a 25% bonus on any money you've saved before your 50th birthday. This means for every £4 you save, you get £1 extra - up to £1,000 each year.

After 12 months, you can use the money to buy your first home, worth up to £450,000. Or you can wait until your 60th birthday and withdraw the money tax-free. Other withdrawals will usually mean a 25% government charge, so you could get back less than you put in.

In the Lifetime ISA, you can save as cash or invest in the stock market.

If you expect to use the money within five years, cash is likely to be your best option. However, if you're planning to save for more than five years, you may want to consider investing in the stock market, which could provide greater returns and help you reach your goal quicker. But bear in mind investing is higher risk and you could make a loss.

So, if you're looking for a flexible way to save for your future, the Lifetime ISA could be for you.”

Important Information:

Unlike cash, investments can fall as well as rise in value so investors could get back less than invested, especially over the short term (less than five years).

Withdrawals from a Lifetime ISA before age 60, other than to purchase an eligible first home, will usually be subject to a 25% government charge.

The Lifetime ISA must be held for 12 months before the government bonus can be used to purchase your first home.

ISA and tax rules can change and the benefits will depend on individual circumstances.

If saving for later life, you should ensure you are getting the maximum benefit offered by your employer first.

Savings in a Lifetime ISA may affect your entitlement (if any) to means tested state benefits.

This is not personal advice, if you are unsure of the suitability of any investment you should ask for advice.

What is a Lifetime ISA?

A Lifetime ISA is a flexible way to save and invest for your first home or later life. You can open one if you’re between 18 and 39 years old.

You can choose to save cash or invest in the stock market, and as with other ISAs, your money can grow free from UK tax. But the real benefit is an extra 25% bonus from the government of up to £1,000 a year.

What is a Lifetime ISA?

How Lifetime ISA rules work

You can contribute up to £4,000 each tax year into the Lifetime ISA and the government will add a further 25%. So for every £4 you save, you get £1 extra - up to £1,000 per tax year.

You need to be between 18 and 39 to open a Lifetime ISA. But you can still pay in – and get the government bonus – until you turn 50.

Try our Lifetime ISA calculator to see the government bonus you could receive over time.

Tax rules can change and their benefits depend on your circumstances. Lifetime ISA allowance forms part of the overall £20,000 annual allowance.

Invest up to

£4,000

each tax year

and receive a
government bonus of

25%

Invest up to

£4,000

each tax year

and receive a
government bonus of

25%

Invest up to

£4,000

each tax year

and receive a
government bonus of

25%

How Lifetime ISA rules work

You can contribute up to £4,000 each tax year into the Lifetime ISA and the government will add a further 25%. So for every £4 you save, you get £1 extra - up to £1,000 per tax year.

You need to be between 18 and 39 to open a Lifetime ISA. But you can still pay in – and get the government bonus – until you turn 50.

Try our Lifetime ISA calculator to see the government bonus you could receive over time.

Tax rules can change and their benefits depend on your circumstances. Lifetime ISA allowance forms part of the overall £20,000 annual allowance.

Withdrawing money from a Lifetime ISA

After 12 months from the first payment, you can use the money to make an eligible house purchase for a property worth up to £450,000. Or you can wait until you're 60 and take your money out then.

If you want to take money out before you're 60 and you aren't buying your first home, there's usually a 25% government charge. That means you could get back less than you originally put in.

Learn more about withdrawing from a Lifetime ISA

At least 2.5% interest rate on cash

HL Lifetime ISA charges and interest rates

We’ve cut our annual account charge for holding investments to 0.25%, so that more of what you pay in can help towards your goals. Other charges still apply.

See our LISA charges

You’ll currently receive at least 2.5% interest on any cash you hold while you’re waiting to invest or withdraw your money.

See current rates and tiers

Lifetime ISA investment options

Ready-made investments
Over 3,000 funds
UK and overseas shares
Investment trusts, bonds and exchange-traded funds (ETFs)

With a Lifetime ISA your investment choice will probably depend on when you need to use the money. Less than five years, then cash is likely to be your best option. But if you're planning to invest for longer than five years, you might want to think about the stock market. If you’re not sure where you’d like to invest, our latest investment ideas could provide some inspiration. Remember investments fall as well as rise in value, so you could get back less than you invest.

See Lifetime ISA investment ideas

Lifetime ISA investment options

How to open a Lifetime ISA

Once you've decided to invest in a Lifetime ISA, it takes less than five minutes to get started. You'll just need a debit card and your national insurance number to hand. Remember that your investments can go down as well as up in value, so you may get back less than you invest.

Two simple ways to start a Lifetime ISA

Open a Lifetime ISA with a lump sum

Get started with a lump sum from as little as £100.

Make a one-off debit card payment and top up whenever you like
Choose from a range of investments when you’re ready
Ideas and support to help you get off to a great start

Open a Lifetime ISA

Set up a Direct Debit

Pay into a Lifetime ISA from £25 each month.

Invest automatically each month
Start, stop, increase or decrease your Direct Debit whenever you like
Ideas and support to help you get off to a great start

Open a Lifetime ISA

See why Joanna chose the HL Lifetime ISA

Joanna is a sole trader who recently opened an HL Lifetime ISA (LISA) to help her save for retirement. See Joanna's full story

Join over 100,000 clients using the HL Lifetime ISA

Security - we're a FTSE-listed company, trusted by over one million clients
Ease - check your Lifetime ISA anytime online or with the HL app
Automatic bonus - we’ll claim your government bonus and add it to your account automatically
Award-winning - we've won over 200 awards, including Best Buy Lifetime ISA 2024 and Best for Customer Service 2024 from the Boring Money Awards 2024
UK-based helpdesk - speak to our client support experts if you have any questions

Learn more about Lifetime ISAs

When can I take money out of my Lifetime ISA?

You can withdraw your money tax free when you’re ready to use it for an eligible house purchase (worth up to £450,000), after you turn 60, or if you are terminally ill. The Lifetime ISA must be opened for 12 months from the date of the first payment.

You can take money out at other times too (including in the first 12 months), but there will usually be a 25% charge from the government. This could mean you get back less than you put in.
What is an eligible house purchase for a Lifetime ISA?

You’ll need to have had your Lifetime ISA for a full year, and you’ll need to be a first-time buyer.

The house you’re buying has to be in the UK and cost £450,000 or less. This is just the house price and it doesn’t include fixtures and fittings. It also needs to be your main residence. If it’s still being built, it’ll need to be your main residence as soon as it’s ready for you to live in.

You’ll need to be buying the house with a mortgage, regulated home purchase plan or through a shared ownership arrangement. If you’re buying a house with cash, you can still use your Lifetime ISA money. But you’d have to pay the government withdrawal charge, which means you could get back less than you put in.
Who qualifies as a first-time buyer?

A first-time buyer is someone who doesn’t own and hasn’t ever owned a property anywhere in the world.
How and when do I get the government bonus?

We claim the government bonus for you and add it to your Lifetime ISA. We’ll do this as soon as possible each month and you should see it in your account in four to nine weeks from the date of your contribution. Please note, the bonus will be added to your Lifetime ISA as cash and you can just place your investment instruction when you’re ready. This can be easily done online, over the phone or in writing.
Can I open a Lifetime ISA if I already have other ISAs?

Yes, you can open and add money to other types of ISAs (Cash ISAs, Stocks and Shares ISAs or Innovative Finance ISAs) alongside your Lifetime ISA. You’ll only be able to save into one Lifetime ISA each tax year.

You can contribute up to £20,000 across all your ISAs in the 2024/25 tax year, with up to £4,000 in your Lifetime ISA. The government bonus doesn’t count towards the £20,000 overall limit or the £4,000 Lifetime ISA limit.

View all Lifetime ISA FAQs

Best Buy Lifetime ISA
Boring Money Awards 2024

Best Investment App
Boring Money Awards 2024

Best Online Stockbroker
The Personal Finance Awards 2023/2024

Help and support

If you have any questions about the HL Lifetime ISA, you can speak to one of our UK-based client support experts.