Money Page · LISA Providers · UK
8 minute read · Updated February 2026
A Lifetime ISA gives you a 25% government bonus on up to £4,000 a year — but not all LISA providers are equal. Fees, fund choice, and platform quality vary significantly. This guide compares the best Stocks & Shares LISA providers in the UK for 2026.
Open before your 40th birthday · Contribute up to £4,000/year (government adds £1,000) · Access penalty-free to buy a first home up to £450,000, or from age 60 for retirement · Must hold for 12 months before using for a home purchase.
| Provider | Annual fee | Fund choice | Best for | Open account |
|---|---|---|---|---|
| Hargreaves Lansdown ★★★★★ | 0.45% (capped £45/yr shares) | 2,500+ funds, shares, ETFs | Experienced investors wanting full control | Open LISA → |
| AJ Bell ★★★★★ | 0.25% (capped £3.50/mo funds) | Large — funds, shares, ETFs | Cost-conscious investors | Open LISA → |
| Moneybox ★★★★☆ | 0.45% + fund charges | 3 ready-made portfolios | First-timers, app-first experience | Open LISA → |
| Wealthify ★★★★☆ | 0.60% + fund charges | 5 ethical or standard plans | Hands-off, ethical preference | Open LISA → |
| Nutmeg ★★★★☆ | 0.75% managed / 0.45% fixed | Ready-made risk-based portfolios | Fully managed, track record matters | Open LISA → |
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On a £20,000 LISA pot the difference between 0.25% and 0.75% annual fees is £100/year. Over 20 years of compounding that gap grows to thousands of pounds. Always check platform fee plus the ongoing charge of the fund you choose. See our LISA fee impact calculator for the full breakdown.
If you want a low-cost global index fund, HL and AJ Bell both offer Vanguard index funds. Moneybox and Wealthify use ready-made portfolios — simpler, but less control and often higher underlying fund charges.
Buying within 2 years? A Cash LISA removes market risk. Buying in 3+ years or saving for retirement? A Stocks & Shares LISA typically grows more over the long run. Our full breakdown: What Is a Lifetime ISA?
The right LISA provider depends on three things: how long you are saving, how hands-on you want to be, and how much you plan to contribute.
If you are saving for a first home in 3-5 years and want a simple, guided experience — Moneybox's app-first approach makes opening and managing a LISA genuinely easy. The ready-made portfolios remove the fund selection decision entirely, which suits people who find investment choice overwhelming.
If you are saving for retirement or a longer horizon and want to keep fees as low as possible — AJ Bell at 0.25% with access to thousands of funds including Vanguard's index trackers is the strongest combination of cost and choice. For index-only investors, Vanguard's own LISA at 0.15% is even cheaper.
If you already use Hargreaves Lansdown and want to consolidate all your savings in one place — HL's LISA lets you hold it alongside your ISA and SIPP on the same platform with the same login. The slightly higher fee is sometimes worth the convenience of a single view.
The 25% withdrawal penalty catches people off guard. It applies to any withdrawal outside the two qualifying scenarios: a first home purchase up to £450,000, or retirement from age 60.
The penalty is not simply giving back the bonus. It is 25% of the full withdrawal amount. So if you put in £4,000, receive a £1,000 bonus, and your pot grows to £6,000 — a non-qualifying withdrawal triggers a £1,500 penalty, leaving you with £4,500. You put in £4,000 and get back £4,500, but you have lost £1,500 of growth and the entire bonus. In some market conditions you can end up with less than you contributed.
The practical implication: only open a LISA with money you are genuinely committed to using for a first home or retirement. If there is any meaningful chance you might need the funds for something else before 60, keep that money in a flexible ISA instead.
A Cash LISA pays interest and carries no market risk — your balance only goes up. It is the right choice if you are buying within 1-2 years and cannot afford for your deposit to fall in value before you need it.
A Stocks and Shares LISA invests your contributions in funds and carries market risk — the value can fall in the short term. Over 5+ years the evidence strongly favours the stock market generating better returns than cash, which makes a Stocks and Shares LISA the better choice for most people buying in 3+ years or saving for retirement.
| Cash LISA | Stocks & Shares LISA | |
|---|---|---|
| Risk | No investment risk | Value can fall |
| Typical return | 3-5% currently | 5-8% long-term |
| Best for | Buying within 1-2 years | Buying in 3+ years or retirement |
| Providers | Moneybox (Cash LISA) | AJ Bell, HL, Moneybox, Nutmeg |
For low fees with strong fund choice: AJ Bell. For simplicity and a great app: Moneybox. For maximum investment control: Hargreaves Lansdown.
Model contributions, the 25% bonus and investment growth over your timeline — free, no sign-up.
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