Comparison: Pensions

Best UK Lifetime ISA (LISA) 2026

Last reviewed May 2026

A Lifetime ISA gives you a 25% government bonus on contributions up to £4,000 a year, but locks the money for either a first home (under £450k) or retirement at 60. The right provider depends on which use case you have and how soon you expect to access the money. We split the comparison into two camps: Cash LISAs (right for first-time buyers within ~3 years) and Stocks and Shares LISAs (right for longer time horizons or retirement use).

Our pick

AJ Bell (Stocks & Shares LISA)

For most LISA holders the right answer depends on use case. If you are a first-time buyer planning to buy within 1-3 years, take Tembo or Moneybox Cash LISA - equity volatility on a short timeline is too risky for a deposit. If you are using the LISA for retirement (or as a longer-dated buyer 5+ years out), AJ Bell Stocks and Shares LISA is the right call: 0.25% platform fee, wide fund range including Vanguard LifeStrategy, and you get equity returns that beat cash over a decade. The 25% government bonus does the same thing in either, so the choice is purely about what you invest in.

Visit AJ Bell (Stocks & Shares LISA) →

Honourable mentions

Tembo (Cash LISA)

Top of the Cash LISA best-buy tables most of the time. If you are buying within 1-3 years, this is usually where the rate is best.

Visit Tembo (Cash LISA) →

Moneybox (Cash LISA)

Slightly behind Tembo on rate but the most polished LISA app and the best 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) →

How we picked

Fees and rates verified from each provider's published schedule, last reviewed May 2026. We focus on long-term cost and fit-for-purpose: a Cash LISA loses to a Stocks and Shares LISA over 10+ years, but wins for a 1-2 year house deposit timeline because of equity volatility.

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 or anyone with a 5+ year time horizon (equities beat cash by a wide margin over that timeframe). The 25% government bonus is identical in both. Our Lifetime ISA UK guide covers the wider rules.
Can I open a LISA at age 39?
Yes, but only just. You can open a LISA between 18 and 39. Once open you can contribute until age 50, even after the account was opened. So opening at 39 still gives you 11 years of contributions and 11 years of bonuses. Worth doing if there is any chance you will buy a first home or want a retirement supplement.
Is the LISA bonus paid on transfers in?
Yes, on Help to Buy ISA transfers (because they were once in another government-incentive ISA). No on standard ISA-to-ISA transfers - you only get the bonus on fresh contributions to the LISA from your bank account. So transferring an existing Stocks and Shares ISA into a LISA does not earn the bonus on the transferred amount; only new contributions do.
Can I transfer my LISA between providers?
Yes. Use the receiving provider's LISA transfer form. Cash LISA to Cash LISA is straightforward. Cash LISA to Stocks and Shares LISA (or vice versa) is also fine, and useful as your timeline changes - e.g. if you decide not to buy a first home and convert the cash LISA to an investment LISA for retirement use.
How does the LISA compare to a SIPP for retirement?
For basic-rate taxpayers without an employer match, the LISA usually returns more pound-for-pound than a SIPP because withdrawals are fully tax-free at 60. For higher-rate taxpayers or anyone with an employer pension match, the SIPP wins. Most readers benefit from doing both. Our LISA vs SIPP deep dive covers the trade-offs in detail.

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