Lifetime ISAs guide

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  • binaryuniverse
    binaryuniverse Posts: 906 Forumite
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    Skipton's LISA is rising to a whopping 0.75% interest.

    It's an extra tenner on my £4000, I guess.
  • livlifelivs
    livlifelivs Posts: 1 Newbie
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    We are first time buyers looking into saving for a house, my partner is over 40 so can't open a LISA but has opened a help to buy ISA instead.
    I am under 40 and a first time buyer also, I want to open a LISA can we use my LISA and my partners help to buy ISA in conjunction with each other so we can both claim the 25% bonus?
  • badger09
    badger09 Posts: 11,210 Forumite
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    livlifelivs wrote: »
    We are first time buyers looking into saving for a house, my partner is over 40 so can't open a LISA but has opened a help to buy ISA instead.
    I am under 40 and a first time buyer also, I want to open a LISA can we use my LISA and my partners help to buy ISA in conjunction with each other so we can both claim the 25% bonus?

    Yes you can.
  • sonicology
    sonicology Posts: 180 Forumite
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    I'm going to open a stocks and shares LISA in the next week or so and wondered if anyone had any advice regarding providers?

    I currently have a s&s ISA with iWeb and am happy with them but I don't think they'll be offering a LISA anytime soon so it looks like I'll have to look elsewhere. Seems that there's not a lot of choice which is disappointing, so I'll be picking between AJ Bell and H&L; AJ Bell have lower fees so I'm probably leaning towards them, but if H&L provide noticeably better service then I probably wouldn't mind paying the extra fees. I will be holding a mixture of Vanguard ETFs and individual US equities if that makes any difference.

    If anyone has any experiences good or bad with the above providers they would like to share then I'd be grateful for your input!
  • Amoux
    Amoux Posts: 67 Forumite
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    sonicology wrote: »
    I'm going to open a stocks and shares LISA in the next week or so and wondered if anyone had any advice regarding providers?

    I currently have a s&s ISA with iWeb and am happy with them but I don't think they'll be offering a LISA anytime soon so it looks like I'll have to look elsewhere. Seems that there's not a lot of choice which is disappointing, so I'll be picking between AJ Bell and H&L; AJ Bell have lower fees so I'm probably leaning towards them, but if H&L provide noticeably better service then I probably wouldn't mind paying the extra fees. I will be holding a mixture of Vanguard ETFs and individual US equities if that makes any difference.

    If anyone has any experiences good or bad with the above providers they would like to share then I'd be grateful for your input!

    Speaking from my own experience, Hargreaves was very quick setting up my LISA and transferring the HTB ISA over to it. They kept me informed, and escalated the process with my HTB provider. I have no complaints. However, my only reasoning for going with HL was that I transferred over to the LISA when it was first launched - I believe there were no other S&S LISA options at that time. I'm expecting that more cheaper providers will come on board next year, so right now I'm happy with HL but expect to transfer out at a later date. The difference in costs will be marginal, given that everyones portfolios are currently so small. It's also worth bearing in mind that HL have higher exit fees, whereas Youinvest allows you to transfer cash out to another LISA for free.

    TBH I would probably just go with whichever provider is cheapest both now and in the long term - which is probably AJ Youinvest.
  • Alexland
    Alexland Posts: 9,653 Forumite
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    AJ Bell are ok and would usually work out cheaper long term especially if you are using most of the allowance and trading infrequently.
  • LilyB1
    LilyB1 Posts: 5 Forumite
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    There's still only a few LISA providers - so a very restricted choice - especially on the cash LISA front (Skipton offer it but that's all for the moment)! I think the big players seem pretty skeptical of it, and will want to see it make a name for itself before they jump on the ship! On the Stocks & Shares LISA front the biggest names are AJBell and Hargreaves Lansdown, but might also be worth considering Nutmeg - they're newer - and on the 'robo-advice' side of the fence. I came across a comparison site that has a couple of LISAs on there - OFF3R worth checking them out (I can't post the link - sorry) - also have some pretty good content on their blog site 'Learn' on what to consider before investing in a LISA
  • Grevi1990
    Grevi1990 Posts: 1 Newbie
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    Hello,

    I'm looking for some advice.

    - I have a Santander HTB ISA and a Skipton LISA
    - My HTB ISA was opened in April 2016 has £5k in it (plus a small amount of interest). £3.4k of this was contributed before 2017/18 tax year.
    - My LISA has £1 in it and was opened in July 2017
    - I'm not looking to buy for a few years

    Clearly my plan is to transfer the HTB into the LISA prior to the end of the 2017/18 tax year.

    My question:

    My HTB ISA pays 4% interest. Am I allowed to transfer the £3.4k (plus interest) into my LISA in this tax year and top it up with £3,999 from another account, thereby retaining my HTB ISA? In the 2018/19 tax year, I would then pay £4k into the LISA while continuing to contribute to my HTB ISA to max out the interest (effectively using it as a regular saver). I am not sure if the rules allow this but it appears to be the best way of maximising the LISA bonus and interest.

    Thanks in advance for any help.
  • sonicology
    sonicology Posts: 180 Forumite
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    Many thanks to everyone who replied, much appreciated!

    I'll do my due diligence but will likely go with AJ Bell, seems like they offer everything I need and will work out cheapest of the available options. Thanks again.
  • eskbanker
    eskbanker Posts: 31,040 Forumite
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    Grevi1990 wrote: »
    My HTB ISA pays 4% interest. Am I allowed to transfer the £3.4k (plus interest) into my LISA in this tax year and top it up with £3,999 from another account, thereby retaining my HTB ISA? In the 2018/19 tax year, I would then pay £4k into the LISA while continuing to contribute to my HTB ISA to max out the interest (effectively using it as a regular saver). I am not sure if the rules allow this but it appears to be the best way of maximising the LISA bonus and interest.
    Yes, the rules permit this, provided that the interest you transfer is whatever had been earned (but not necessarily paid) as at 5 April 2017, which Santander should advise as part of the transfer process....
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