Foresters Stocks and Shares Lifetime ISA
Investing gives you the chance to grow your savings, but there’s a risk that the value of your investment could go down as well as up.
What is a Stocks and Shares Lifetime ISA?
A Stocks and Shares Lifetime ISA is a way for UK residents aged 18-39 to save towards a first home and/or later in life (after age 60) by investing in the stock market, through stocks, shares and other assets. You can save up to £4,000 each tax year, free from UK tax and gain an additional 25% Government bonus on all contributions. You can gain an extra £1,000 each tax year when you save £4,000.
If you’re buying a home with a partner, sibling or friend, both of you can save in your own Lifetime ISAs and combine your savings.
Our Stocks and Shares Lifetime ISA gives you the potential for better growth when investing for more than 5 years.
As with all Lifetime ISAs, you can only withdraw money to purchase your first home and/or after turning 60. If you withdraw for any other reason then the Government penalty will apply and 25% will be deducted from the withdrawn amount, so you may get back less than you have contributed.
Expert managers to make investment decisions
Monthly or single contributions from £20
Choose between two funds, including a sustainable-focused option
Exclusive member benefits, a thank you from us
For flexible, tax-efficient investing without access/withdrawal restrictions check out our Stocks and Shares ISA.
What are the rules of a Lifetime ISA?
- Must be a UK resident 18-39 to open a Lifetime ISA
- You can contribute up to £4,000 each tax year from your £20,000 overall ISA allowance and gain a 25% Government bonus up until your 50th birthday.
- Must be held for at least 12 months before using it for a first home purchase.
- Can only be used for homes valued up to £450,000 in the UK, that you must live in and purchase with a mortgage.
- Savings can be accessed penalty-free at age 60, any withdrawals made prior to this that are not for a first home, will incur the 25% Government penalty.
- A Lifetime ISA should not be used instead of a workplace pension, but as an additional savings pot for retirement.
Where do you want to invest your money?
When opening a Stocks and Shares Lifetime ISA, you’ll be able to choose one or both of the following funds and decide how much to invest in each.
A straightforward global fund
Foresters Stakeholder (Schroders) Managed Fund
- A global, straightforward fund designed for Foresters customers.
- 45-60% invested in shares to help reduce risk.
- Invest over the medium to long-term.
- Professionally managed fund by Schroders.
Risk rating: Medium-low
Annual Management Charge 1.5%, reducing to 1% after 10 years.
Product information
A sustainable-focused fund
Foresters Stakeholder (Schroders) Sustainable Future Managed Fund
- Invest for an overall positive effect on people and the planet.
- 0-60% invested in shares to help reduce risk.
- Invest over the medium to long-term.
- Professionally managed fund by Schroders.
Risk rating: Medium-low
Annual Management Charge 1.5%, reducing to 1% after 10 years.
Open a Lifetime ISA View fund details
The money in this Lifetime ISA is invested in stocks and shares. This gives good potential for your money to grow over the long-term, but there is a risk that value could go down as well as up. These is the chance you could get back less than has been contributed. Tax treatment depends on individual circumstances.
You can withdraw money from a Lifetime ISA to buy your first home, or for later life at age 60. Other withdrawals will mean a 25% Government penalty, so you could get back less than you put in. It is not recommended to choose a Lifetime ISA over a workplace pension as you will loose out on employer contributions and it may impact your entitlement to means-tested benefits.
25%
Government bonus
Up to £1,000 each tax year
0%
Transfer or contributions fees
Including entry and exit fees
£20
Minimum contributions
With single or monthly payments
1.5% - 1%
Annual Management Charge
1.5% reducing to 1% after 10 years
Why invest with Foresters?
Highly rated
Our customers and members rate us 4.7 out of 5 for our service
Trusted
2.5 million customers trust us with over 5.2bn funds to look after
Established
Managing family finances and making a positive impact for over 150 years
We go the extra mile
Financial Advisers, expert investment managers, and exclusive benefits
Get rewards by becoming a Foresters member
If you open an Lifetime ISA with us you become a member, and will have access to a range of exclusive benefits at no cost.
Member benefits are not regulated by the PRA or the FCA and may change in the future.
Want to discuss your savings options?
Foresters provides a personal financial planning service by video call or in the comfort of your home. To help meet yours and your family’s current and future financial needs, at no extra cost.
Transfer your ISA to Foresters
Transfer to our Lifetime ISA
We accept transfers from Stocks and Shares and Cash ISAs from other providers to our Lifetime ISA. We do not accept Lifetime ISA transfers.
Transfer a Junior ISA or Child Trust Fund
Transfer any child savings you have to us to keep all of your savings under one roof.
Lifetime ISA FAQs
If you are a UK resident aged 18 – 39, you can open a Lifetime ISA. You should be looking to save to buy your first home or save for later on in life, or both.
We recommend you aim to invest for at least five years for better potential for growth. If using your money towards a first home, you will need to invest for at least 12 months before.
You are able to view the value of your Lifetime ISA 24/7 by opening your MyPlans account.
The Government (HMRC) pays the Lifetime ISA bonus monthly. You can check when the bonus has been paid into your account by viewing the 'activity' section in your MyPlans account.
If you are planning to use your money towards purchasing a first home, you do not withdraw the funds directly yourself, because the Government penalty will be applied. If you are buying a house, contact Customer Services, who will guide you through the process.
Lifetime ISAs are subject to a Government penalty (25% of the withdrawn amount) if not used of the purchase of your first home or withdrawals made before you are 60. To withdraw money from your Lifetime ISA, please contact Customer Services or your Financial Adviser. The unit price displayed is for the previous working day, which changes daily, this means you may receive a little more or less than what you have chosen to withdraw. The price you receive will be based on the date the withdrawal is requested, and it may take up to 5 working days to process your request.
No, we do not currently accept Lifetime ISA transfers, however you can open a new Lifetime ISA each tax year, making sure you only contribute towards one Plan each tax year.
We also do not accept Help to Buy ISA transfers.
If you are eligible for our other ISA element (Stocks and Shares or Lifetime), you will be able to open this online or with your Financial Adviser.
Discuss your options with a Financial Adviser.
We have no hidden charges. Our Lifetime ISAs have a 1.5% annual management charge reducing to 1% after 10 years, with no other charges.
Our Lifetime ISA could be the best for you if you are 18 or over and looking to start saving for your first home and/or after age 60. With a Government bonus of 25% on your savings! As our Lifetime ISA is a stocks and shares Lifetime ISA you will be investing your money and will need to be happy to take some risk.
There is no interest rate as our Lifetime ISA invests in stocks and shares and is not a Cash ISA. Stocks and Shares ISAs have the aim of providing better growth than cash in the long-term.
Our Lifetime ISA is protected by the Financial Services Compensation Scheme (FSCS) which means that in the unlikely event that we cannot meet our obligations you will be able to make a claim for the full value of the Lifetime ISA from the FSCS.
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Learn the Lifetime ISA basics
Want to know if a Lifetime ISA is right for you? Read everything to know about Lifetime ISAs to help you feel in control of your money.
About member Benefits
Description of member benefits that you may receive assumes you are a Foresters member. Members must be 18 years of age or older and must have an active Foresters Plan and maintain it in good standing. Foresters member benefits are non-contractual, subject to benefit specific eligibility requirements, definitions and limitations and may be changed or cancelled without notice. Member benefits are not regulated by the Prudential Regulation Authority or the Financial Conduct Authority and may change in the future.