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Lifetime ISAs explained

Everything you need to know about Lifetime ISAs

  • WHY EQI?

    Lifetime ISA

    The EQi Lifetime ISA has the lowest rate in the market*

  • EQi explains

    How to transfer

    A step by step guide

  • EQi explains

    How to invest 

    Get started with a Lifetime ISA

  • EQI EXPLAINS

    How to withdraw 

    The rules around taking money out

What is a LISA?

A LISA is a form of Individual Savings Account, only available to UK residents who are aged between 18 and 39 to help people save for their first home or put money aside for their retirement.

The government will add a 25% bonus based on the contributions paid into the account each year. To secure the maximum £1,000 annual bonus, you will need to have paid in £4,000 each tax year.

Like other ISAs, any gains your investments make will be tax-free. A LISA forms part of your ISA overall annual allowance, which is currently £20,000 each tax year.

  • Receive up to £1,000 each year

    The government pays the bonus directly into your LISA, based on any payments you have made into your account. It’s calculated as 25% of the cash you have paid in.

  • Example LISA scenario

    You deposit £2,000 into your LISA. HMRC will add a £500 bonus, so you’ll have £2,500. The bonus is based on the amount of money you pay in, not the value of your investments. The bonus is paid into your account as cash and you can then decide where to invest it.

  • Can parents open a LISA for their children or grandchildren?

    You can’t open a LISA on a child’s behalf, but once they open the account themselves, you can gift money them cash to deposit into their LISA.

    Will I have to pay tax?

    You won’t pay tax on any income or capital gains from investments held within a LISA and, if you complete a tax return, you do not need to declare any LISA interest, income or capital gains.

  • WHY EQI?

    The cheapest in the market*

    Benefit from our market-leading custody fee of 0.2% per annum on holdings in your account

  • Why EQi?

    Free for existing EQi customers

    If you have an EQi ISA, SIPP or dealing account (paying the usual £12.50 quarterly custody fee), your Lifetime ISA will be free

Building your Lifetime ISA portfolio

  • TOOLS

    Which fund?

    Funds to get you started, selected by independent investment research company, Square Mile

  • INSIGHTS

    First time investors

    View our latest articles for first time investors

  • Why EQi?

    Investment calculator

    How much do you need to invest each month to reach your investment goal?

  • Video

    Why invest?

    86% of our customers say the key advantage of being a DIY investor is feeling in control

Insights

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06.02.19

Using diversification to defend your investments

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18.03.20

Breaking down investment jargon

EQi explains

How can investing be responsible?

insights
20.09.18

Five places to invest your money

Insights

How to be a successful DIY investor

Insights
03.10.17

Lifetime ISA or pension?

  • insights
    06.02.19

    Using diversification to defend your investments

    insights
    18.03.20

    Breaking down investment jargon

    EQi explains

    How can investing be responsible?

  • insights
    20.09.18

    Five places to invest your money

    Insights

    How to be a successful DIY investor

    Insights
    03.10.17

    Lifetime ISA or pension?

*Correct August 2020