Lifetime ISA - UK Stocks and Shares LISA

What are lifetime ISAs?

Lifetime ISAs are a product set up by the UK government to help people either buy their first home or save for retirement. The government tops up lifetime ISAs by 25%, so for every £100 you save, it will give you an extra £25 on top.

You can't save more than £4,000 in your lifetime ISA each tax year so the biggest government bonus you can get is £1,000 a year.

As with all ISAs, lifetime ISAs are tax-free. This means that no matter how much your investments grow by, you won't pay any tax on the money you make. Our Lifetime ISA invests in stocks and shares, therefore it has good potential to grow over the long-term but the value can go down as well as up.

What are the lifetime ISA rules?

There are a few rules to be aware of:

You must be aged between 18 and 39 and be a UK resident to take out a lifetime ISA
You must keep the money invested for at least 12 months
You can't invest more than £4,000 each tax year (tax year starts in April)
You must use the money you invest to buy your first home or leave it invested until you turn 60
You will be charged 25% of everything you take out of the account if it's not for your first home or if you've not turned 60

Things to be aware of

The money you put in our Lifetime ISA is invested in stocks and shares. This means there's good potential for it to grow over the long-term, but there is a risk that the value could go down.

Lifetime ISA rules and risks The alternative is a cash lifetime ISA which earns interest like a current account does.

There is also a penalty charge for taking your money out within 12 months or not using it for your first home or for retirement. This is known as the government withdrawal charge, see below for details.

See what your lifetime ISA could be worth

Choose how much you want to pay into your lifetime ISA and see how much your money could grow

This projection shows how your lifetime ISA could grow with low, medium and high performance. Remember, projections are not a guarantee of future performance and you could get back less than you pay in.

Initial investment

Monthly payment

What do these numbers mean?

Please note: No more than £4,000 may be invested into a Lifetime ISA within a single tax year. This includes your initial investment and your monthly direct debit payments.

What is the lifetime ISA government withdrawal charge?

The government will charge you 25% of everything you withdraw if you:

Take your money out within 12 months of opening the lifetime ISA
Use the money for something other than your first home
(unless you've turned 60, when you can do what you like)

This means you'll be charged 25% of the money you saved yourself plus the money the government put in. For example, if you put in £1,000 then the government will have added £250. If you withdraw the lot, your penalty would be 25% of £1,250, which is £312.50, leaving you with just £937.50.

Therefore, if you’re not intending to buy your first home with the money or keep it in the account until you turn 60, you might best opening an ISA instead.

What are climate-friendly funds?

If you choose to invest in our Global Equity Fund, up to 100% of your money will be invested in climate-friendly options. With our Global Mixed Fund, up to 35% is used to buy shares in climate-friendly options, while the rest is invested in lower-risk, fixed-interest assets.

When investing your money in climate-friendly options, our fund managers use a clever scoring system to rank companies by climate-friendly criteria.

More money is invested in companies that have:

A higher revenue percentage from “green” business activities, such as renewable energy production.

Lower greenhouse gas emissions in the event the company used all of its fossil fuel reserves.

A clear strategy and action plan to reduce greenhouse gas emissions.

A lower proportion of income from non-climate friendly activities such as drilling and mining.

Lower carbon emissions, including within their supply chain.

We also exclude the companies that score the lowest within each industry – meaning we don’t invest in them at all. Companies that are involved in things like building controversial weapons are also taken off the list.

This results in a portfolio of companies working towards causing less environmental damage compared to the companies non-climate-friendly funds are likely to invest in.

Find out more about our green investments

Why invest in a OneFamily Lifetime ISA?

There are a few things that really set us apart from other lifetime ISA providers. Here's just some of the reasons to choose OneFamily.

We give you a simple choice of just two types of fund when you open your Lifetime ISA. You don't even have to stay in the same one, you can switch to the other at any time for free
If you choose to put your money in our Global Equity Fund, up to 100% of your money will be invested in climate-friendly funds. If you choose Global Mixed, up to 35% will be, while the rest will be invested in lower-risk, fixed-interest assets
We charge just one upfront fee for managing your Lifetime ISA, which is a 1.1% annual management charge.
As a member-owned business, we want to have a positive impact on those around us. Our Inspiring Better Futures vision underpins our commitment to supporting our members and customers, creating an inclusive and diverse work environment and making a real difference in our communities.

How to open a lifetime ISA with us

1

Choose a fund

Discover how each fund works and choose the right one for you
2

Apply online

Our simple application process shouldn't take longer then 10 minutes
3

Manage your investments

Keep track of your Lifetime ISA's performance via your online account
4

Buy your first home

Use your Lifetime ISA towards your first home deposit

Choose which of our two funds you'd like to invest your money in. Once your Lifetime ISA is open, you can switch between funds at any time, free of charge.

Climate friendly

Global Equity

Invest into global companies who focus on operating in a more sustainable way

Invest for your future in a way that's aligned with your values. Global Equity invests your money into companies who are actively working towards a more sustainable business model and reducing their carbon footprint. Find out more about our climate investments

Avg. yearly
growth*
Fund
size
Global
investments

Risk rating

Lower Higher

Fund performance:

*Performance includes all charges payable. Please remember that past performance should not be seen as an indication of future performance.

You can find out more about Global Equity in our Key Information Document and Fund Factsheet

Open a Lifetime ISA

Global Mixed

A balanced mix of climate-friendly options and fixed interest investments to reduce risk

Invests up to 35% of your money into climate-friendly shares and at least 65% into fixed interest assets and bonds to help reduce risk. Choose this fund if you want to lower your risk of losing money while still investing in some climate-friendly options. Find out more about our climate investments