Lifetime ISAs guide

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Comments

  • Alexland
    Alexland Posts: 9,653 Forumite
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    Well done on finding that Esk
  • GPK10
    GPK10 Posts: 53 Forumite
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    The inability to transfer is very annoying. As an over 40 who holds both a Skipton cash LISA and a Onefamily S&S LISA, I am reluctant to add to either as I fear the money getting trapped with low interest rates or high fees and being unable to move it where I want, which is surely the whole point of a product designed to last 20+ years?
  • Alistair31
    Alistair31 Posts: 945 Forumite
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    GPK10 wrote: »
    The inability to transfer is very annoying. As an over 40 who holds both a Skipton cash LISA and a Onefamily S&S LISA, I am reluctant to add to either as I fear the money getting trapped with low interest rates or high fees and being unable to move it where I want, which is surely the whole point of a product designed to last 20+ years?

    I think you’ll be quite alright, it’s unlikely any provider is going to make it their business model to trap the over 40’s and then hike their fees.
  • Khaderbhai
    Khaderbhai Posts: 141 Forumite
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    Hi

    I have reviewed lots of the LISA and S&S ISA posts but I still have a few unanswered questions which I hope someone could help assist with (apologies if I have missed these answers).

    I am 30 years old and currently save approx £150 a month into a stocks and shares ISA, I max out my employers pension scheme to make sure they match my contributions and hope to be able to continue to pay the £150 a month as a minimum for say the next 30 years. I am now interested in the LISA over the S&S ISA, I understand the platform options are less for a LISA and fees could be more, but I wanted to know more info on how a LISA affects you if things change in the future. Do LISA’s affect your ability to claim for child tax credits say? Do they affect your ability to claim any credits if say you were made redundant? Or is a S&S ISA safer in this regard?

    Thanks
    K
  • masonic
    masonic Posts: 23,245 Forumite
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    Khaderbhai wrote: »
    Do LISA’s affect your ability to claim for child tax credits say? Do they affect your ability to claim any credits if say you were made redundant? Or is a S&S ISA safer in this regard?
    Both types of ISA will affect your ability to claim means tested benefits as, unlike a pension, the investments can be cashed in and therefore count towards your savings and investments.
  • cfw1994
    cfw1994 Posts: 1,872 Forumite
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    edited 10 July 2019 at 5:03PM
    Alexland wrote: »
    1% AMC and 0.3% Investment Costs is pretty unappealing - to be avoided alongside Moneybox and The Share Center. I believe that Skipton, Nutmeg, AJ Bell and HL all have a good LISA offer for different target audiences.

    Alex

    (refresh an old comment here) - we have been looking to open small LISAs for our young adult 'children' - want a decent stock based, likely to be a monthly investment (may start around £100 pcm, maybe more, may drop lower later).

    Are you referring to the https://www.share.com LISAs?
    Their page here suggests
    Your fund’s annual management charge and ongoing charge (see links above) are taken from the fund itself, so you don’t need to worry about paying them separately. There are no account fees, dealing fees, or initial fund charges to pay.

    & the fact sheets I can find elsewhere show reasonable returns on all 3 funds available. On the face of it, this sounds a reasonable option to work with.....

    Anyone got these, or (conversely) perhaps considered it but chose other s&s LISAs to be 'better' ?

    eta: & then I discover their 'cost sheet' which tells me it is indeed a 1% Dealing commission online...

    Which perhaps make AJ Bell a better (cheaper) option to deal with.....
    Plan for tomorrow, enjoy today!
  • eskbanker
    eskbanker Posts: 30,938 Forumite
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    cfw1994 wrote: »
    Your fund’s annual management charge and ongoing charge (see links above) are taken from the fund itself, so you don’t need to worry about paying them separately. There are no account fees, dealing fees, or initial fund charges to pay.
    You don't need to worry about paying them separately but you do need to worry that they're north of 1.5%pa in their own right!
  • Alexland
    Alexland Posts: 9,653 Forumite
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    cfw1994 wrote: »
    (refresh an old comment here)

    Well that was my view in early 2018. Since then the Cash LISA market has improved with better interest rates but Nutmeg, AJ Bell and HL remain my favourite choices for different S&S LISA situations. The difficulty with Nutmeg is that they are a loss making company however they are starting to get traction in the market and grow their assets under management.

    My view is that The Share Centre webpage for their LISA product is very misleading focusing on the zero platform fees and making you dig deeper to determine that the fund fees are very expensive to the point where it would be cheaper to pay platform and more reasonable fund fees elsewhere.

    AJ Bell YouInvest wouldn't be very good for £100 pm (or less) due to their £1.50 fund dealing fee. HL would probably be best (no fund dealing fee, higher platform fee but partly offset by discounted fund choices) but with both of them being DIY platforms there is the management of the cash account balance to pay regular platform fees to consider. At least with Nutmeg it is all automatic.

    Alex
  • vrab
    vrab Posts: 1 Newbie
    Do I understand properly that there is no allowance in the property price for London? Even if you use a LISA for shared ownership, the total amount for the property has to be <450k not the portion of what you're buying?

    Thanks
  • eskbanker
    eskbanker Posts: 30,938 Forumite
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    vrab wrote: »
    Do I understand properly that there is no allowance in the property price for London? Even if you use a LISA for shared ownership, the total amount for the property has to be <450k not the portion of what you're buying?
    Yes, that's correct, the £450K limit applies nationally and relates to the total property value rather than any subdivision of it.

    Perhaps worth noting that under the Help to Buy ISA scheme, the same £450K limit applies specifically to London whereas elsewhere it's £250K, so the nationwide LISA limit is effectively bringing the rest of the country up to London levels rather than disadvantaging London as such, although obviously those buying into shared ownership properties in London are unlikely to be thrilled!
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