Stocks & Shares Lifetime ISAs: Best Accounts

Stocks & Shares Lifetime ISA (LISA) allows you to collect a 25% government bonus while investing your savings making it perfect to achieve goals like retirement or first-time home buying. In comparison to Cash LISA, your money is invested in the stock market, offering higher growth potential, though riskier.

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How a Stocks & Shares LISA Works

Government Bonus: Save up to £4,000/year and the government adds 25% (max 1,000).
Tax-Free Growth: Capital gains or dividend tax on investment is not applied.
Withdrawal Policies:
First home ≤ 450k or 60 years of age Penalty-Free, Rest with a 25% penalty for other withdraws.

Best Stocks & Shares LISA Providers (2025)

Compared to Cash LISAs, Stocks & Shares LISAs have the potential to grow more (with risk) because they invest your money in markets. Providers offer either:

Providers offer either:

Managed investments (experts select the assets).
Self-directed investing (you choose the assets).

Here are the top platforms:

Provider	Fees	Min Deposit	Key Features	Cash Interest
AJ Bell Dodl	0.15% (min £1/month)	£100 lump or £25/month	• 6 risk-based portfolios • Themed investments • Ethical option	4.58%
AJ Bell	0.25%	£500 lump or £25/month	• DIY or ready-made • £5 trading fee • 0.75% FX fee	2.07% (≤£10k)
Tembo	0.35%	£1	• Single ethical portfolio • No cash interest	N/A
HL	0.45% (scales down)	£100 lump or £25/month	• Tiered fees (↓0.1% over £2M) • 4 risk portfolios	2.53%
Moneybox	0.45% + £1/month	£100 lump or £25/month	• 6 portfolios (3 ethical) • Round-up saving tool	3%
Nutmeg	0.75%	£500	• 30 portfolio options • 1% cashback on transfers*	N/A

Notes:

Lowest cost: AJ Bell Dodl (0.15%)
Best for beginners: Moneybox (easy-to-use app + ethical options)
High-net-worth: Hargreaves Lansdown (tiered fees become more favorable after £250k)
All have FSCS protection (£85k limit)

*Nutmeg’s 1% cashback promo comes with £10k transfer minimum.

Choosing the Right Stocks & Shares LISA Provider

✔ Nutmeg (30 portfolios) or Moneybox for hands-off investing
✔ AJ Bell (low fees) or HL (good research tools) for DIY trading
✔ Tembo or Moneybox’s ESG portfolios for Ethical focus

Important Note: The value of investments can go down. If you’re buying a house and plan to use the funds in less than 5 years, consider a Cash LISA.

Pros & Cons of a Stocks & Shares LISA

✅ Advantages

Higher returns than cash savings (historical average of 5-7% annually).
Diversified investments (ETFs, funds, shares)
Ideal for retirement: compounding growth over decades.

❌ Disadvantages

Investment risk (values may fall)
Cap on home price £450k (limiting in most expensive areas).
Fees for withdrawals before term.

Who Should Get a Stocks & Shares LISA?

✔ First-time buyers expecting to purchase after 5+ years.
✔ Comfortable with risk and flexible long-term investors (5+ years).
✔ Ages 40 and under (age limit is 40).

Alternatives to Consider

Cash LISA: Less risk for those looking to buy homes in the next 1-5 years.
Retirement Account: More complex for those looking to retire (no 25% bonus).
General Investment Account (GIA): No cashing out fees (but taxable).

Final Thoughts

Stocks and Shares LISAs are the ideal choice for long-term wealth-building, so long as permanent access to the capital is not required for some time. Invest through AJ Bell, HL, and Dodl if you are looking to spend less.

Important notes:

Start early to enable the effects of compound interest.
Avoid withdrawals other than for retirement/home purchases.
Spread investments across different asset classes or geographies like global index funds.

For a detailed breakdown of this year’s top investment platforms, read our Best Stocks & Shares ISAs in 2025 – Top Platforms Compared, Cash ISAs Overview and The Best Accounts and Rates and Lifetime ISA (LISA): Buy Your First Home or for Retirement– we analyze fees, investment options, and exclusive features to help you choose the perfect tax-efficient account for your portfolio.