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New Lifetime ISA launch: how does it compare?

Written by: Paloma Kubiak
OneFamily becomes the latest provider to launch a stocks and shares Lifetime ISA. But how does it stack up?

The Lifetime ISA launched in April 2017 and allows those aged 18-39 to save up to £4,000 a year for their first home or retirement where they will receive a maximum £1,000 bonus from the government. See YourMoney’s Lifetime ISA guide for more information.

OneFamily offers investors a choice of two Lifetime ISA funds, depending on savings goals:

  • OneFamily Global Mixed Investment fund which invests in corporate and government bonds and company shares
  • OneFamily Global Equity fund which invests in company shares.

Both come with an annual management charge of 1% though the Global Mixed Investment fund charge is up to 0.3% while the Equity fund is up to 0.2%.

Investors can apply online and can start investing by depositing £25 a month or a £250 lump sum.

Customers can transfer their Help to Buy ISAs into a OneFamily Lifetime ISA.

Latest investment Lifetime ISA provider

To date, there is only one cash Lifetime ISA provider on the market: Skipton Building Society.

But a number of stocks and shares Lifetime ISAs have already been made available to investors:

AJ Bell

The AJ Bell LISA launched in June last year and allows DIY investors to access funds, shares, investment trusts, Exchange Traded Funds (ETFs), gilts and bonds, as well as its passive and ‘favourite’ funds.

Its minimum investment amount is £25 per month and it has a platform charge of 0.25% so the annual cost of a £5,000 LISA (including £1,000 government bonus) will be £12.50.

The investment charge will be whatever the charge is for the fund, investment trust or ETF chosen by the investor. The only other charges to be aware of are dealing charges – which are £9.95 for buying shares and £1.50 for buying funds.

Hargreaves Lansdown

The platform charge for the LISA is 0.45%. The annual charges for funds depends on which ones you hold, so a tracker fund like the L&G UK Index fund might cost 0.06% – bringing you to a total of 0.51%. However, a managed fund like the Woodford Equity Income fund could cost 0.6%, which is a total of 1.05%.

On £4,000, a 0.51% charge would be £20.40, while a 1.05% charge would be £42.


The costs for the LISA depend on whether an investor chooses Nutmeg’s fully managed portfolio range or its fixed allocation range.

On a £5,000 investment, the charges over the year are as follows:

  • Fully managed: Nutmeg fee of 0.75% (incl VAT), average investment cost of 0.19%. The total estimated costs over the next 12 months are £53.
  • Fixed allocation: Nutmeg fee of 0.45% (incl VAT), average investment cost of 0.17%. The total estimated costs over the next 12 months are £37 for fixed allocation.

Nutmeg is the only stocks and shares LISA provider that can’t accept Help to Buy ISA transfers.

The Share Centre

With its ready-made LISA, there’s no dealing commission, account admin fee or initial charges. But you will need to pay ongoing fund charges within the underlying fund.

The Ongoing Charge Figure (includes 0.75% Annual Management Charge) are as follows:

  • SF Cautious: 1.69%
  • SF Positive: 1.74%
  • SF Adventurous: 1.82%

There is a £25 fee to transfer your account to another provider but it’s free to transfer to it from another provider.


Last month, savings and investing app Moneybox launched its Lifetime ISA offering.

The app is free to download on iOS and Android and lets users round up their purchases to the nearest pound to invest their spare change into thousands of global companies via three tracker funds.

As an example, if your coffee costs £2.40, you can round-up the 60p towards the LISA. However, app users can make additional savings through regular deposits, payday boosts and can make one-off payments to help savers get closer to the £4,000 LISA limit.

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