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    Has anyone opened a Lifetime ISA?

    I believe that only Stock and shares ISA's are available. Ive never had one of these so bare with me. If I put £1 into one, can this go below zero? Do I get interest? I have also read that the early providers charge something like 2% fee.

    TIA.

    6 Comments

    You can lose your £1 but it won't go negative, it will end at zero

    Hargreaves Lansdowne does LISA. You can have a look at their fees. You can choose 'safer' funds to invest in but there is still a risk of losing your money, all be it less so than more aggressive funds. If you are uncomfortable taking risks, I understand that LISA cash accounts will be available from June reading an article.

    Original Poster

    mutley1

    You can lose your £1 but it won't go negative, it will end at zero … You can lose your £1 but it won't go negative, it will end at zero :3Hargreaves Lansdowne does LISA. You can have a look at their fees. You can choose 'safer' funds to invest in but there is still a risk of losing your money, all be it less so than more aggressive funds. If you are uncomfortable taking risks, I understand that LISA cash accounts will be available from June reading an article.



    Thanks. I was thinking of opening a LISA now with £1 and then putting the rest (£1,599 + Help to Buy) in late March 2018. So for now the worst case scenario including the fee they take would be that I lose a pound?

    whoMODStheMODS

    Thanks. I was thinking of opening a LISA now with £1 and then putting the … Thanks. I was thinking of opening a LISA now with £1 and then putting the rest (£1,599 + Help to Buy) in late March 2018. So for now the worst case scenario including the fee they take would be that I lose a pound?



    there is no point in investing £1. The minimum investment will probably be £100. Why £1?

    in answer to your question, do you get interest, most funds will pay dividends so that is interest in a sense. you can invest in the ftse 100 index tracker funds for example, and that pays around 3.5% to 4% pa in dividends, so you can consider that as interest if you like to think of it that way.

    Original Poster

    mutley1

    there is no point in investing £1. The minimum investment will probably … there is no point in investing £1. The minimum investment will probably be £100. Why £1?in answer to your question, do you get interest, most funds will pay dividends so that is interest in a sense. you can invest in the ftse 100 index tracker funds for example, and that pays around 3.5% to 4% pa in dividends, so you can consider that as interest if you like to think of it that way.



    The reason for just £1 is advice from maoneysavingexpert. Since my Help to Buy has better interest(?) then I plan to keep doing the HTB and open the Lifetime ISA as soon as possible with the least amount to get the ball rolling and maximise interest. Then later on put the rest at later date.

    whoMODStheMODS

    The reason for just £1 is advice from maoneysavingexpert. Since my Help … The reason for just £1 is advice from maoneysavingexpert. Since my Help to Buy has better interest(?) then I plan to keep doing the HTB and open the Lifetime ISA as soon as possible with the least amount to get the ball rolling and maximise interest. Then later on put the rest at later date.



    I have just read that article on moneysavingexpert. I see about the time limit of withdrawing the LISA for property purchase.

    Have a look at HL to see if there is a minimum amount of investment. HL has a small platform fee for ISA, but I can't remember how much, to hold your funds if you do the standard funds and not active trading. I would guess they will have a similar charging structure for LISA but I think it will be more as there is more admin for them to deal with in claiming the government bonus for you.

    If you do investment LISA, you will need to learn about stocks & shares. I would not advise you do this without understanding what you are doing as there are risks involved. If you know nothing about the stock market and don't plan to invest long term in stocks & shares (you have to be prepared to stay in for at least 5 years if the going gets tough), which sounds like your case, it will be better to hang on until June when the cash LISA will become available.

    Original Poster

    mutley1

    I have just read that article on moneysavingexpert. I see about the time … I have just read that article on moneysavingexpert. I see about the time limit of withdrawing the LISA for property purchase.Have a look at HL to see if there is a minimum amount of investment. HL has a small platform fee for ISA, but I can't remember how much, to hold your funds if you do the standard funds and not active trading. I would guess they will have a similar charging structure for LISA but I think it will be more as there is more admin for them to deal with in claiming the government bonus for you.If you do investment LISA, you will need to learn about stocks & shares. I would not advise you do this without understanding what you are doing as there are risks involved. If you know nothing about the stock market and don't plan to invest long term in stocks & shares (you have to be prepared to stay in for at least 5 years if the going gets tough), which sounds like your case, it will be better to hang on until June when the cash LISA will become available.



    TYVM. Yeah probably wait till june.
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