Boost your savings by 25% with a Lifetime ISA
Investing gives you the chance to grow your savings, but there’s a risk that the value of your investment could go down as well as up.
What is a Stocks and Shares Lifetime ISA?
A Stocks and Shares Lifetime ISA is a way to save for your first home and/or later in life (after age 60) by investing in the stock market, through stocks, shares and other assets. If you are a UK resident aged 18-39, you can save up to £4,000 each tax year, free from UK tax and gain an additional 25% Government bonus on all contributions.
You can gain an extra £1,000 each tax year when you save £4,000.
Open a Stocks and Shares Lifetime ISA from just £20 and save for over 5 years to invest for better potential growth. Our investment experts at Schroders make investment decisions for you, and you'll have access to exclusive member benefits.
As with all Lifetime ISAs, you can only withdraw money to purchase your first home and/or after turning 60. If you withdraw for any other reason then the Government penalty will apply and 25% will be deducted from the withdrawn amount, so you may get back less than you have contributed.
For flexible, tax-efficient investing without withdrawal restrictions check out our Stocks and Shares ISA.
What are the rules of a Lifetime ISA?
- Must be a UK resident 18-39 to open a Lifetime ISA.
- You can contribute up to £4,000 each tax year from your £20,000 overall ISA allowance and gain a 25% Government bonus up until your 50th birthday.
- Must be held for at least 12 months before using it for a first home purchase.
- Can only be used for homes valued up to £450,000 in the UK, that you must live in and purchase with a mortgage.
- If you’re buying a home with a partner, sibling or friend, both of you can save in your own Lifetime ISAs and combine your savings.
- Savings can be accessed penalty-free at age 60. Any withdrawals made prior to this, that are not used for purchasing your first home, will incur the 25% Government penalty.
- A Lifetime ISA should not be used instead of a workplace pension, but as an additional savings pot for retirement.
Already have a Lifetime ISA with us?
To get started, choose a Stocks and Shares Lifetime ISA
Lifetime ISA
Save for your future with a choice of funds
- Choose to invest your savings in our straightforward stakeholder fund and/or sustainable-focused fund.
- Invest over the medium to long-term in a professionally managed fund by Schroders.
- Annual Management Charge of 1.5%, reducing to 1% after 10 years.
- Exclusive member benefits.
Risk rating: Medium-low
View more information about our Stocks and Shares Lifetime ISA.
Product informationShariah Lifetime ISA
Save towards your future inline with Islamic beliefs
- An appointed Shariah Supervisory board and Shariah Adviser (Amanie Advisors Ltd) to make sure the investments are Shariah compliant.
- Invest over the medium to long-term in a professionally managed fund by Schroders.
- Annual Management Charge of 1.5%, reducing to 1% after 10 years.
- Exclusive member benefits.
Risk rating: Medium
View more information about our Stocks and Shares Shariah Lifetime ISA.
The money in this Lifetime ISA is invested in stocks and shares. This gives good potential for your money to grow over the long-term, but there is a risk that value could go down as well as up. There is the chance you could get back less than has been contributed. Tax treatment depends on individual circumstances.
You can withdraw money from a Lifetime ISA to buy your first home, or for later life at age 60. Other withdrawals will mean a 25% Government penalty, so you could get back less than you put in. It is not recommended to choose a Lifetime ISA over a workplace pension as you will loose out on employer contributions and it may impact your entitlement to means-tested benefits.
25%
Government bonus
Up to £1,000 each tax year
0%
Transfer or contributions fees
Including entry and exit fees
£20
Minimum contributions
With single or monthly payments
1.5% - 1%
Annual Management Charge
1.5% reducing to 1% after 10 years
Why invest with Foresters?
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Managing family finances and making a positive impact for over 150 years
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Want to discuss your savings options?
Foresters provides a personal financial planning service by video call or in the comfort of your home. To help meet yours and your family’s current and future financial needs, at no extra cost.
Transfer your ISA to a Foresters Lifetime ISA
Transfer an existing Stocks and Shares or Cash ISA from anther provider to our Lifetime ISA to make the most of the 25% Government bonus. We are unable to accept transfers from existing Lifetime ISAs.
Transfer to our ISA Transfer to our Shariah ISA
Want to transfer your child's savings to us?
Lifetime ISA FAQs
If you are a UK resident aged 18 – 39, you can open a Lifetime ISA. You should be looking to save to buy your first home or save for later on in life, or both.
We recommend you aim to invest for at least five years for better potential for growth. If using your money towards a first home, you will need to invest for at least 12 months before.
You are able to view the value of your Lifetime ISA 24/7 by opening your MyPlans account.
The Government (HMRC) pays the Lifetime ISA bonus typically on or around the 18th. If your contribution is applied to your Plan before the 5th of the month, the bonus will be paid that same month; otherwise, it will be paid the following month. You can check when the bonus has been paid into your Lifetime ISA by viewing the 'activity' section in your MyPlans account.
If you are planning to use your money towards purchasing a first home, you do not withdraw the funds directly yourself, because the Government penalty will be applied. If you are buying a house, contact Customer Services, who will guide you through the process.
Lifetime ISAs are subject to a Government penalty (25% of the withdrawn amount) if not used of the purchase of your first home or withdrawals made before you are 60. To withdraw money from your Lifetime ISA, please contact Customer Services or your Financial Adviser. The unit price displayed is for the previous working day, which changes daily, this means you may receive a little more or less than what you have chosen to withdraw. The price you receive will be based on the date the withdrawal is requested. Once we have received all the necessary documents from yourself to perform the required security checks, we aim to process withdrawals within 5 working days. It can then take 3-5 working days for the money to reach your account.
No, we do not currently accept Lifetime ISA transfers, however you can open a new Lifetime ISA each tax year, making sure you only contribute towards one Plan each tax year.
We also do not accept Help to Buy ISA transfers.
If you are eligible for our other ISA element (Stocks and Shares or Lifetime), you will be able to open this online or with your Financial Adviser.
Discuss your options with a Financial Adviser.
We have no hidden charges. Our Lifetime ISAs have a 1.5% annual management charge reducing to 1% after 10 years, with no other charges.
Our Lifetime ISA could be the best for you if you are 18 or over and looking to start saving for your first home and/or after age 60. With a Government bonus of 25% on your savings! As our Lifetime ISA is a stocks and shares Lifetime ISA you will be investing your money and will need to be happy to take some risk.
There is no interest rate as our Lifetime ISA invests in stocks and shares and is not a Cash ISA. Stocks and Shares ISAs have the aim of providing better growth than cash in the long-term.
Our Lifetime ISA is protected by the Financial Services Compensation Scheme (FSCS) which means that in the unlikely event that we cannot meet our obligations you will be able to make a claim for the full value of the Lifetime ISA from the FSCS.
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Learn the Lifetime ISA basics
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About member Benefits
Description of member benefits that you may receive assumes you are a Foresters member. Members must be 18 years of age or older and must have an active Foresters Plan and maintain it in good standing. Foresters member benefits are non-contractual, subject to benefit specific eligibility requirements, definitions and limitations and may be changed or cancelled without notice. Member benefits are not regulated by the Prudential Regulation Authority or the Financial Conduct Authority and may change in the future.