Pensions3 providers Updated May 2026

Best UK Cash Lifetime ISA (LISA) 2026

Quick answer - our pick

Tembo (Cash LISA)

Best for: Rate-conscious first-time buyers who want web access

For a Cash LISA the only thing that really matters is the headline rate, because the 25% government bonus is identical across all three providers. Tembo sits at the top of the table more often than not, gives you both web and app access, and accepts transfers in if you already have a LISA elsewhere. Moneybox runs it close and has the slicker app; if you value the round-up nudges or already use Moneybox, that is a defensible pick too. Either choice will outperform the average UK Cash ISA by a margin worth caring about.

Visit Tembo (Cash LISA) See full comparison
A Cash Lifetime ISA pays interest like a normal cash savings account, plus the 25% government bonus on contributions up to £4,000 a year. It is the right LISA for first-time buyers within roughly three years of completion - the kind of timeline where equity volatility could lose you your deposit at the worst possible moment. If you have a longer horizon, or you are using the LISA for retirement at 60, the Stocks and Shares LISA is the right wrapper instead. Our [Stocks and Shares LISA comparison](/compare/stocks-shares-lisa) covers those.

Full comparison

Provider Interest rate (AER) Best for
Moneybox (Cash LISA)Approx 4.35% AER (incl. 1.55% bonus for 12 months)First-time buyers planning to buy within 1-3 years
Tembo (Cash LISA)Approx 4.30% AER (incl. 0.50% boost)Rate-conscious first-time buyers who want web access
Nottingham BS (Cash LISA)Approx 3.7% AERFirst-time buyers who prioritise direct FSCS coverage over rate

Provider details

Moneybox (Cash LISA)

First-time buyers planning to buy within 1-3 years

Interest rate (AER)Approx 4.35% AER (incl. 1.55% bonus for 12 months)
Accepts transfersYes
PlatformApp-only

Pros

  • Most popular Cash LISA by user count
  • Polished app with house-purchase tracking
  • Round-up feature feeds into the LISA

Cons

  • App-only; no web interface
  • Rate is competitive but not always top of the table
  • Variable rate, can drop without notice
Moneybox Lifetime ISA page Visit Moneybox (Cash LISA) →

Tembo (Cash LISA)

Rate-conscious first-time buyers who want web access

Interest rate (AER)Approx 4.30% AER (incl. 0.50% boost)
Accepts transfersYes
PlatformApp + web

Pros

  • Often top of Cash LISA best-buy tables
  • Available via web (not app-only)
  • Clean interface

Cons

  • Smaller, newer brand than Moneybox
  • Variable rate
  • Fewer integrated features (no investment LISA option)
Tembo Lifetime ISA page Visit Tembo (Cash LISA) →

Nottingham BS (Cash LISA)

First-time buyers who prioritise direct FSCS coverage over rate

Interest rate (AER)Approx 3.7% AER
Accepts transfersYes
PlatformWeb + app

Pros

  • Direct FSCS coverage via Nottingham Building Society
  • Long-running Cash LISA (formerly Beehive Money)
  • Reliable provider with solid track record

Cons

  • Rate trails Tembo and Moneybox
  • Less polished interface
  • Not always the headline-grabber
Nottingham BS Lifetime ISA page Visit Nottingham BS (Cash LISA) →

Honourable mentions

Moneybox (Cash LISA)

Runner-up

Best for: First-time buyers planning to buy within 1-3 years

Slightly behind Tembo on rate but the most polished LISA app and the strongest brand for first-time buyers in the under-30 demographic. If you value the UX and the round-up nudges over a 0.1% rate difference, it is the right pick.

Visit Moneybox (Cash LISA) →

Nottingham BS (Cash LISA)

Runner-up

Best for: First-time buyers who prioritise direct FSCS coverage over rate

Direct FSCS coverage via the Nottingham Building Society, which some savers prefer over fintech wrappers that sit on top of a partner bank. The rate is the lowest of the three but the provider is the most established.

Visit Nottingham BS (Cash LISA) →

How we picked

Rates verified from each provider's published Cash LISA page, last reviewed May 2026. Rates are variable and quoted as AER inclusive of any introductory bonus. Where a provider runs a time-limited bonus on top of the base rate, we note both so you can see what the rate drops back to.

Frequently asked questions

Should I get a Cash LISA or a Stocks and Shares LISA?
Cash LISA for a first-time buyer within 1-3 years - equity volatility could lose you the deposit at the worst time. Stocks and Shares LISA for retirement use at 60 or anyone with a 5+ year time horizon, where equities beat cash by a wide margin. The 25% government bonus is identical in both. Our Stocks and Shares LISA comparison covers the investment options, and the Lifetime ISA UK guide explains the wider rules.
How is the Cash LISA bonus paid?
HMRC pays the 25% bonus monthly into your LISA, on contributions made in the previous month. So a £4,000 contribution made over the tax year ends up with £1,000 of bonuses added in monthly slices. The bonus then earns interest alongside your contributions until you withdraw the money for a first home or at age 60.
Can I switch from a Cash LISA to a Stocks and Shares LISA later?
Yes. Use the receiving provider's LISA transfer form. Cash LISA to Stocks and Shares LISA is a common move once your time horizon stretches beyond 3-5 years, or if you decide not to buy a first home and want the wrapper to chase higher long-term returns instead.
Can I open a Cash LISA at age 39?
Yes, but only just. You can open a LISA between age 18 and 39. Once open you can contribute until age 50, even if the account itself stays open past 50. Opening at 39 still gives you 11 years of contributions and 11 years of bonuses.
Is FSCS protection the same as a normal savings account?
Yes for Cash LISAs held with a bank or building society - your money is covered up to £85,000 under FSCS, the same as any other UK cash savings. For fintech-fronted Cash LISAs (Moneybox, Tembo), the underlying bank holding the money is what determines FSCS coverage, which is usually disclosed in the provider terms.

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