HL reducing LISA fee to 0.25%

P1Fanatic

Money_Grabber13579 said:

I did note they have a separate fee structure for LISA’s over £1m and then free over £2m (I think). Is that really necessary? Will anyone realistically ever be able to have a LISA which accumulates £1m, never mind £2m, given you can only pay in for roughly 30 years? The growth would need to be enormous to get to anything close to £1m I’d have thought.

I had exactly the same thought when I received the email - which made me think it was part of some wider generic ISA changes but I was getting notified as I have my LISA with them (as well as a S&S ISA). 32yrs x £5k = £160k max contribution between age 18 and 50.

Alexland

Money_Grabber13579 said:

I did note they have a separate fee structure for LISA’s over £1m and then free over £2m (I think). Is that really necessary? Will anyone realistically ever be able to have a LISA which accumulates £1m, never mind £2m, given you can only pay in for roughly 30 years? The growth would need to be enormous to get to anything close to £1m I’d have thought.

Using HL's own calculator if you invested £416 per month (£4k+1k bonus pa) at 7% for the 30 years from age 18 to 48 that would give £489,242. Then starting again with that lump sum for an extra 2 years (as their calculator cannot do more than 30 years) until age 50 would give £570,854. Then growing another 10 years with no contributions until access age 60 would give £1,122,956 so you would need to leave it invested until 69 to get to £2,064,508 and by then they would likely have adjusted the charge limits for inflation.

https://www.hl.co.uk/tools/calculators/regular-investing-calculator