Lifetime ISA: Hargreaves Lansdown vs Moneybox

What is a Lifetime ISA?

A Lifetime ISA (LISA) is a tax-efficient savings account designed to help people save for their first home or retirement. LISAs were introduced by the UK government in 2017, and they offer a number of benefits, including a 25% government bonus on savings of up to £4,000 per year.

Hargreaves Lansdown Lifetime ISA

Hargreaves Lansdown is a FTSE 100 company providing investment services to more than 17 million clients. You can open its Lifetime ISA from £1, and there is no minimum monthly contribution. Hargreaves Lansdowns Lifetime ISA is a great way to take advantage of the 25% government bonus with you £4,000 Lifetime ISA allowance as fees are low. Hargreaves Lansdown is one of the few providers to offer a Lifetime ISA that allows you to save Cash as well as invest in Stocks and Shares.

Moneybox Lifetime ISA

Moneybox is a digital wealth management platform that offers a range of savings and investment products, including a Lifetime ISA. Moneybox's Lifetime ISA is easy to open and manage online, and there is no minimum monthly contribution. Moneybox does not charge any fees on its Lifetime ISA, making it a great option for those who are looking for a low-cost way to save for their future.

How Lifetime ISA rules work

You can contribute up to £4,000 each tax year into the Lifetime ISA and the government will add a further 25% as a bonus.

1. The bonus is paid monthly, so you'll get the full 25% bonus on your contributions for the tax year as soon as you make them.
2. You can withdraw your money from the Lifetime ISA at any time, but if you do so before you reach the age of 60, you will have to pay a 25% withdrawal charge.
3. The withdrawal charge is deducted from your savings, so you will lose 25% of your money if you withdraw it before you reach the age of 60.

Conclusion

The Lifetime ISA is a great way to save for your future, and Hargreaves Lansdown and Moneybox are two of the leading providers of this type of account. Both providers offer competitive rates and low fees, so it is important to compare the features of each account before making a decision.