Is a Lifetime ISA worth it? How LISAs work and key rules

What is a Lifetime ISA and how much could the government bonus boost your savings by? We look at the perks and the pitfalls. Are LISAs worth it?

A woman holds a jar with cash in which represents a Lifetime ISA
A Lifetime ISA can be a great way to save for the future – but these accounts can come with hefty penalties
(Image credit: Getty Images)

If you’re looking to get onto the housing ladder but are struggling to stitch together a mortgage deposit, a Lifetime ISA (LISA) could be a good option for you.

While there are several types of ISA, LISAs are specifically aimed at those looking to buy their first home or save for retirement. As well as its tax wrapper, the account is an attractive option for savers because it comes with a juicy government bonus.

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Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.

Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.

Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.

Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.

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