LISA

dw123323 · 11 February 2020 at 4:16PM

Hello MSEs,

I currently add money to the stocks and shares ISAs each year (usually the full limit) and use this to invest in different funds or shares. I had been reading more into the LISA's and how you can receive the 25% on up to £4000 and still invest in funds and shares.

To me, it seems like a great idea to invest the £4000 in the LISA each year and then any extra (up to £16,000) into the normal S&S ISA. The only downside I see is that the S&S account gives you easy access to the funds with no penalty if you ever need to withdraw, whereas the LISA will charge you a 25% early exit fee. Is there anything else Im missing on this?

Thanks in advance!

cloud_dog · 11 February 2020 at 4:24PM

No.

eskbanker · 11 February 2020 at 4:25PM

If you're happy with the LISA withdrawal penalty issue (which ceases when you reach 60) then no, there aren't any massively significant downsides - there's only a limited range of platforms offering them and hopefully you'll have spotted that they're only available to under-40s, but apart from that, fill your boots!