Not many LISAs providers about.

DE_612183

I've just come into some money and wanted to help my children by putting sums into Life Time ISAs for them so they can purchase a house in the future.

I don't like the idea of Moneybox and would rather a high street provider - but the skipton doesn't have branches in my location ( Cardiff ).

Why aren't the bigger banks and BSs offering this product?

And does anyone know of a company that does?

grumiofoundation

List of lifetime isa providers, cash and stocks and shares.
https://www.moneysavingexpert.com/savings/lifetime-isas/

If you are looking at cash LISA don’t really understand why you wouldn’t “like the idea of Moneybox”, has (under Oak North) full FSCS protection and offers the best interest rate on a cash LISA. Although there aren’t a lot of providers what do you think the big banks will offer that the current providers don’t (apart from lower interest rates!).

eskbanker

Dave46049 wrote: »

I've just come into some money and wanted to help my children by putting sums into Life Time ISAs for them so they can purchase a house in the future.

As with any other adult account, LISAs can't be opened for children, they can only be opened by those aged 18 or over.

Dave46049 wrote: »

I don't like the idea of Moneybox and would rather a high street provider - but the skipton doesn't have branches in my location ( Cardiff ).

Have you considered that this latest generation is probably much more predisposed to using apps (such as Moneybox) rather than being constrained by whoever happens to be on your local high street?

Dave46049 wrote: »

Why aren't the bigger banks and BSs offering this product?

And does anyone know of a company that does?

There's no getting away from the fact that there are currently only four providers of cash LISAs, as the scheme has never really taken off in the way that the government hoped it would, so there's nothing on offer from major players.

grumiofoundation wrote: »

List of lifetime isa providers, cash and stocks and shares.
https://www.moneysavingexpert.com/savings/lifetime-isas/

The MSE list is incomplete, fuller listings are available at the likes of https://www.which.co.uk/money/savings-and-isas/isas/lifetime-isas-ac6mf6s7r9d5 and https://moneytothemasses.com/saving-for-your-future/compare-the-best-and-cheapest-lifetime-isa

DE_612183

grumiofoundation wrote: »

List of lifetime isa providers, cash and stocks and shares.


If you are looking at cash LISA don’t really understand why you wouldn’t “like the idea of Moneybox”, has (under Oak North) full FSCS protection and offers the best interest rate on a cash LISA. Although there aren’t a lot of providers what do you think the big banks will offer that the current providers don’t (apart from lower interest rates!).

I was looking for something more so that my children ( or I ) can pay into an account in person as well as online transactions. Moneybox appears to be an app on their phone - I don't want it to be easy for them to withdraw or see how much is there at any point in time.

SonOf

Why aren't the bigger banks and BSs offering this product?

Because it is unprofitable, confusing and has a higher risk of misssale allegations.

eskbanker

Dave46049 wrote: »

I don't want it to be easy for them to withdraw or see how much is there at any point in time.

As above, it's an adult account for over-18s, who have to open it themselves and are subsequently fully responsible for managing it, so if you're trying to find a way of putting aside some sort of secret stash for them then a LISA is emphatically not the solution for your requirements.

You could perhaps keep money in non-LISA accounts in your own name, or if they're under 18 you can go down the junior ISA route.

And on the subject of ease of access, one of the fundamental principles of LISAs is that withdrawals are penalised, unless they're put towards a first-time property purchase (or left until after the holder is 60).

xylophone

I was looking for something more so that my children ( or I ) can pay into an account in person as well as online transactions. Moneybox appears to be an app on their phone - I don't want it to be easy for them to withdraw or see how much is there at any point in time.

Do you fully understand this product?

https://www.gov.uk/lifetime-isa

grumiofoundation

Dave46049 wrote: »

I was looking for something more so that my children ( or I ) can pay into an account in person as well as online transactions. Moneybox appears to be an app on their phone - I don't want it to be easy for them to withdraw or see how much is there at any point in time.

As already said you can’t pay in. You can gift them the money for them to pay in.

If you can’t trust your child(ten) not to withdraw the money (N. B. less money than has actually been paid in), the Lifetime ISA is probably not the best product for them, or indeed any situation in which you gift them money for their future.

DE_612183

Thanks for the info folks.
My children are over 18.
I do want the money to go toward a house for them not a holiday! and I didn't want them losing out on the bonus.
I also wanted them to be able to "top up the pot" once it's started.

eskbanker

Dave46049 wrote: »

Thanks for the info folks.
My children are over 18.
I do want the money to go toward a house for them not a holiday! and I didn't want them losing out on the bonus.
I also wanted them to be able to "top up the pot" once it's started.

There's nothing stopping you from saying to your kids that you'd like to gift them some money for use towards a future house but that it's conditional on them opening a LISA into which you can pay it - this wouldn't stop them from seeing their balances, or from withdrawing it if they so chose, but obviously if they've been well brought up and given a decent financial education then they wouldn't want to 'spaff it up the wall' and would respect the wishes of their dear pop.

Alternatively, keep the money to yourself for now and gift it when needed....

SonOf

If you are not using your dividend allowance and the investments are not going to be a large amount then you could just hold the money unwrapped in your name (and that of a spouse/partner if one). You control the money as if its yours and you decide the handover date.

If you want to belt and brace it in case of death then you can cover that in your Will.