Lifetime ISA UK Guide 2026
The Lifetime ISA (LISA) is one of the most generous financial products the government has ever created. If you are between 18 and 39 and saving for your first home or retirement, a LISA should be at the top of your list.
How It Works
Save up to £4,000 per year and the government adds a 25% bonus — up to £1,000 per year. Save the maximum every year from age 18 and you could receive up to £32,000 in government bonuses alone.
The money can only be withdrawn tax-free for two purposes: buying your first home (under £450,000) or retirement from age 60. Any other withdrawal incurs a 25% penalty that effectively claws back the bonus.
LISA for First-Time Buyers
A couple saving the maximum for five years accumulates £40,000 plus £10,000 in bonuses — £50,000 total for a deposit. The account must have been open for at least 12 months before using it to buy.
Best LISA Providers
| Provider | Type | Rate / Return |
|---|---|---|
| Moneybox | Stocks and Shares | Market returns |
| AJ Bell | Stocks and Shares | Market returns, wide fund choice |
| Paragon Bank | Cash | 4.9% AER fixed |
| Beehive Money | Cash | 4.6% AER easy access |
For money needed within five years, a cash LISA is safer. For retirement with a long time horizon, stocks and shares gives better long-term growth.
LISA rules are set by the government and could change. Always check GOV.UK for current limits and rules.