Can I transfer my LISA to another provider?

Yep. You can transfer your existing Lifetime ISA (LISA) to another provider whenever you like, and often for free.

All you need to do is find a great new LISA provider (company), and then let them know you want to transfer your existing LISA – they’ll then take care of everything (such as getting in touch with your existing provider), and your money should arrive within a few weeks. Simple right?

The harder bit (although it’s easy really) is finding the right LISA provider for you. But here’s where Nuts About Money can help, we’ve reviewed all the best Lifetime ISAs to narrow down the very best, and here they are…

Best Lifetime ISAs

Transferring your Lifetime ISA

All sounds pretty easy right? The important thing is NOT to open a brand new LISA if you’re already saving into one – you’re only allowed to open and save into one Lifetime ISA per tax year (April 6th to April 5th the following year).

Instead, just let your new LISA provider know you want to transfer an existing LISA when you’re signing up, and they’ll take it from there.

It should only take a few weeks (at most it should take 30 days). It all depends on how nice your current LISA provider is – sometimes they’ll be pretty slow with the paperwork, but it will get there in the end.

Note: if you’re due a LISA bonus payment and it hasn’t come through yet, it will turn up in your new LISA too – the ISA providers will sort it out between themselves.

Is there a limit on how much I can transfer?

Nope! You can transfer any amount of your LISA to another provider any time you like, and it doesn’t affect your annual LISA allowance of £4,000 (how much you can save per year). So, you could transfer the full amount within your current LISA or just part of it.

However, if you’re planning to transfer just part of it, you’ll need to transfer everything you’ve saved within the current tax year (April 6th to April 5th the following year).

As an example, you could transfer a LISA worth £8,000 to another provider, and then still add in another £4,000 throughout the tax year. Or, transfer £4,000 of it to another provider, and keep £4,000 where it is (but only save another £4,000 in your new LISA).

Can I transfer to a Cash LISA?

Yep. You can transfer any type of Lifetime ISA (either a Cash LISA or Stocks and Shares LISA) to a Cash LISA (saving cash in return for interest).

Can I transfer to a Stocks and Shares LISA?

Yep, just like transferring to a Cash LISA, you can also transfer an existing Cash LISA, or Stocks and Shares LISA to a new Stocks and Shares Lifetime ISA.

Cash LISA vs Stocks and Shares LISA

Not sure which type of LISA is for you? Let’s run through both options.

Cash LISA

A Cash LISA is just like a regular savings account you might have with your bank – you add money, and you earn interest in return. Although with a LISA, you’ll get a juicy 25% bonus from the government on everything you save too.

Nuts About Money tip: check out Tembo¹ for a Cash Lifetime ISA, they’ve got one of the best interest rates going.

Stocks and Shares LISA

With a Stocks and Shares LISA, instead of earning interest, you’ll be able to invest your money with the aim of growing it more over time. (Typically, investing your money sensibly would mean your money grows more than saving cash over time (but there’s no guarantees)).

Depending on which LISA provider you choose, you’ll be able to pick from a huge range of investment options, or simply let the experts handle things, and aim to grow your money sensibly over time (recommended for most people).

If this sounds interesting, check out our guide to the best Stocks and Shares LISAs.

Can you have more than one LISA?

You can technically have more than one LISA, such as a Cash LISA and a Stocks and Shares LISA, however you can only open and pay into one each tax year (April 6th to April 5th the following year).

So, if you haven’t paid into one this tax year, instead of transferring, you are able to simply open a new one, and start paying into that if you want to.

Although there’s not normally any cost to transfer a LISA to a new provider, so unless you really really want multiple LISAs, or one of each type, you can simply transfer your existing LISA to your new provider (like Tembo¹ and Moneybox¹).

Overview of Lifetime ISAs

Need a refresher of a Lifetime ISA? Let’s run through them.

A Lifetime ISA is a government scheme designed to help you save for your first home, and they’re pretty great.

You’ll get a massive 25% bonus from the government on all your contributions, and you can save up to £4,000 per tax year (April 6th to April 5th the following year). So that’s a huge £1,000 for free every year if you’re able to save the maximum.

You’ll be able to use your LISA to buy a home worth up to £450,000, and if you’re buying with a partner, you can both use one.

As it’s designed for your first home (for you to live in, rather than a buy to let), you’ll need to be a first time buyer (so not bought a home before), and you’ll need to be using a mortgage.

You’ll also need to have your LISA open for at least 12 months before you can use it, and you’ll need to be under 40 to open one.

You can keep paying into it until you’re 50, and if you don’t use it for your first home, you’ll be able to access the cash at age 60.

The downside is that if you want to withdraw the cash and not use it towards your first home (under the age of 60), you’ll have to pay a 25% penalty, which actually works out as more than the free cash the government gives you (it sounds odd but the maths works out as less).

Can I transfer my LISA to another type of ISA?

You can in fact transfer your LISA to another type of ISA, such as a Cash ISA (saving cash tax-free), or a Stocks and Shares ISA (investing tax-free). However, as your ISA won't be a Lifetime ISA you’ll still have to pay the 25% penalty (called a withdrawal charge), when you transfer it, which the new ISA provider will do automatically.

So, you’ll end up with quite a bit less after transferring it, which might not make too much sense to do. If you’re not going to use your LISA for a new home, you may simply want to keep it with a top provider so it can keep growing over time until you're 60, when you can withdraw it penalty free.

Note: you can save into the other types of ISAs alongside your LISA, and you can have as many as you like. You’ll be able to save up to £20,000 per tax year across all your ISAs (called your ISA allowance), however part of that includes the £4,000 LISA allowance.

Let’s recap

There we have it. How to transfer a LISA to another provider. Pretty simple really isn’t it? Your new LISA provider will take care of everything, just let them know you want to transfer your existing LISA over when you sign up.

Your money should appear in your new LISA within 30 days, and any bonuses that you’re owed will come over too.

The hard bit is picking the best LISA provider, but that’s where we can help. We’ve reviewed all the top LISAs, to make things super easy for you…

Tembo¹ comes out on top, it’s got one of the highest interest rates, and it’s easy to use. They’ll also be able to find you the best mortgage when the time comes to buy your first home, and they can even help you borrow more.

Moneybox¹ is also great, and also one of the top interest rates, but the rate reduces after 12 months.

For all the top options, and to learn more, here’s our guide to the best Lifetime ISAs.

And that's it. All the best saving for your first home.