Updated 27th August 2022
As at August 27th 2022, the below represent the the best cash LISA (Lifetime ISA) rates currently available.
Beware, once you subscribe to a Cash LISA, you will not be able to open or subscribe to another Cash LISA account in the same tax year, unless you transfer the original account to the new provider.
To open a Cash LISA account, you must a UK resident and at between the ages of 18 – 39 years old.
LISA Facts
LISA accounts receive a 25% bonus on all subscriptions, e.g. a subscription for £ 1,000.00 would generate a £ 250.00 bonus. This bonus is usually paid into your account within 4 – 6 weeks
Unauthorised withdrawals suffer a 25% withdrawal, hence in order to make a withdrawal, you will need a sufficient balance to cover the withdrawal charge
Authorised withdrawals – some withdrawals do not suffer the 25% withdrawal, these are buying your first home, withdrawals after the age of 60 and if you have been diagnosed with a terminal illness.
No further subscriptions are allowed into a LISA after the age of 50.
You can subscribe a maximum of £ 4,000.00 to a LISA account in any one tax year. This will use up part of your overall LISA allowance of £ 20,000.00
Cash LISA account list
Moneybox Cash Lifetime ISA
MoneyBox are currently offering an interest rate of 1.20 % AER variable.
Though Moneybox are not a bank, your money would be held with a bank qualifying for the Financial Services Compensation scheme.
This account can be opened and managed only via the MoneyBox mobile app with just £1, and does allow withdrawals and does it allow transfer ins.
Provider: MoneyBox
Interest rate: 1.20 % Variable
Transfer in allowed? Yes
Min Initial Deposit: £ 1
When is interest paid?: Monthly
Newcastle BS Cash Lifetime ISA (Issue 3)
Newcastle currently offers a rate of 1.20 % AER variable.
This account can only be opened online and managed online.
Provider: Newcastle BS
Interest rate/AER: 1.20 % Variable.
Transfer in allowed? Yes (but only from existing LISA accounts, transfers from Cash and Stocks Shares ISA are not permitted)
Min Initial Deposit: £ 1.00
When is interest paid: Annually
Paragon Bank Cash Lifetime ISA – Issue 3
Paragon offer a rate of 1.00% AER variable.
This account can be opened online and managed either online, mail or telephone
Provider: Paragon
Interest rates: 1.00%
Transfer in allowed? Yes (but only from existing LISA accounts, transfers from Cash and Stocks Shares ISA are not permitted)
Min Initial Deposit: £ 1
When is interest paid: Annually