LISA transfers over age 40

Wings_of_Ambition

Hey all,

Quick question regading LISA's and the age limit.  I'm currently 39, and hold two LISAs, neither of which have amazing interest rates (0.3% and 0.5%).  As the annual government bonus is effectively a 25% interest boost, I would like to keep the LISA's, more than likely for retirement rather than a house purchase.  I've seen that LISA's can only be opened up to age 39.  If new accounts pop up in future years with better rates, will I be able to transfer my current ones into the new accounts, or would that be classed as 'opening' a LISA, and therefore not permitted due to being 40 and over?

Struggling to find answers online, as search results tend to be dominated by the main LISA rules.

Ta

masonic

In theory they can be transferred above the age of 40. In practice few providers support this (none, in the case of S&S LISAs).

If you are saving for retirement, then 20+ years in cash is not a good idea as you see the value of your money erode due to inflation. The 25% bonus, spread over 20+ years works out at little more than a 1% boost to the rate.

eskbanker

The good news is that the LISA scheme rules allow you to open new accounts after 40, specifically for transferring in existing ones.

The bad news is that very few providers seem to allow this in their Ts & Cs or software - this thread is one of several in which this is discussed:

https://forums.moneysavingexpert.com/discussion/6205505/over-40-and-wanting-to-transfer-a-lisa/p1

Note that the context of the discussion is typically S&S LISAs specifically, as saving in the cash ones is unlikely to be sensible if earmarking the money for long-term retirement planning (where it would be eroded by inflation if saving in cash).

And regarding "the annual government bonus", there is of course no annual government bonus, just a bonus after each contribution....

Alexland

masonic said:

In theory they can be transferred above the age of 40. In practice few providers support this (none, in the case of S&S LISAs).

Has it been confirmed that EQi have stopped accepting paper form transfer requests from over 40s? What about Onefamily? Not to say either of them are very good options so if contributing towards age 60+ then the OP would be best starting the transferring to a S&S provider before turning 40 else their bonus will likely be wasted on inflation eroding the spending power of the money each year.

masonic

Alexland said:

masonic said:

In theory they can be transferred above the age of 40. In practice few providers support this (none, in the case of S&S LISAs).

Has it been confirmed that EQi have stopped accepting paper form transfer requests from over 40s? What about Onefamily? Not to say either of them are very good options so if contributing towards age 60+ then the OP would be best starting the transferring to a S&S provider before turning 40 else their bonus will likely be wasted on inflation eroding the spending power of the money each year.

I have forgotten about Onefamily, but EQi LISAs will need to be transferred out in due course, will they not? Meaning the only option available to over-40s with an EQi LISA is Onefamily or a cash LISA?

Alexland

masonic said:

EQi LISAs will need to be transferred out in due course, will they not?

It would be a bold move for II to just tell EQi and Share Centre LISA customers to 'go away, we are shutting down the platforms'. I expect they will arrange for the accounts to be moved to Nutmeg, Moneybox or Onefamily which might be fine for Share Centre customers (who already had a very limited and expensive fund choices) but it might be a shock for EQi investors used to having a broad range of DIY investment choices. It would be better for EQi investors to go to AJ Bell but can you really see those arch competitors doing a deal?

masonic

Alexland said:

masonic said:

EQi LISAs will need to be transferred out in due course, will they not?

It would be a bold move for II to just tell EQi and Share Centre LISA customers to 'go away, we are shutting down the platforms'. I expect they will arrange for the accounts to be moved to Nutmeg, Moneybox or Onefamily which might be fine for Share Centre customers (who already had a very limited and expensive fund choices) but it might be a shock for EQi investors used to having a broad range of DIY investment choices. It would be better for EQi investors to go to AJ Bell but can you really see those arch competitors doing a deal?

Maybe ITI Capital fancies another go at an acquisition

Nurse2047

I have recently tried to transfer my CASH LISA to OneFamily and wont allow me it looks like they have stopped accepting referrals from LISAs.

Alexland

MFW2026 said:

I have recently tried to transfer my CASH LISA to OneFamily and wont allow me it looks like they have stopped accepting referrals from LISAs.

Yes they don't seem to mention anything about accepting LISA transfer requests on their website anymore so that seems to be another transfer option gone. It's really not looking good for the future development of the LISA market.

cricidmuslibale

Alexland said:

MFW2026 said:

I have recently tried to transfer my CASH LISA to OneFamily and wont allow me it looks like they have stopped accepting referrals from LISAs.

Yes they don't seem to mention anything about accepting LISA transfer requests on their website anymore so that seems to be another transfer option gone. It's really not looking good for the future development of the LISA market.

At the moment I would say that it's really not looking good for the future development of almost the entire savings market! I never thought I'd ever feel the need to say this but I've now resorted to praying for some significant inflation in the near future, so that the Bank of England feel duty bound to at least slightly raise the horribly low 0.1% base rate! Very sadly I can't see any other factors at the moment that may dissuade the vast majority of savings providers from continuing to lower their savings rates even further from the dreadfully low levels that they already are at now!

masonic

cricidmuslibale said:

Alexland said:

MFW2026 said:

I have recently tried to transfer my CASH LISA to OneFamily and wont allow me it looks like they have stopped accepting referrals from LISAs.

Yes they don't seem to mention anything about accepting LISA transfer requests on their website anymore so that seems to be another transfer option gone. It's really not looking good for the future development of the LISA market.

At the moment I would say that it's really not looking good for the future development of almost the entire savings market! I never thought I'd ever feel the need to say this but I've now resorted to praying for some significant inflation in the near future, so that the Bank of England feel duty bound to at least slightly raise the horribly low 0.1% base rate! Very sadly I can't see any other factors at the moment that may dissuade the vast majority of savings providers from continuing to lower their savings rates even further from the dreadfully low levels that they already are at now!

People tend to focus too much on the nominal interest rate when they should be more concerned about the inflation adjusted rate. Inflation would need to really bite for the BoE to take action that could send GDP on a nose-dive. I would think 2-3% inflation would be welcomed with no corrective action needed, so how high would inflation need to go to precipitate a rise in base rate to 1% I wonder?