At OneFamily, we charge just one fee for managing your Lifetime ISA: an Annual Management Charge (AMC) of 1.1% of your account's value.
Like all ISAs, lifetime ISAs are tax-exempt, meaning you won't need to pay any income tax or capital gains tax on the money you take out, no matter how much your lifetime ISA has grown.
But it's likely that you'll need to pay a fee to the provider managing your lifetime ISA.
The other charge to be aware of (and avoid if you can) is the government withdrawal charge. You may need to pay this when you take money out of your lifetime ISA, but only if your withdrawal goes against the lifetime ISA rules.
Let's take a closer look at the charges you can expect to pay if you open a OneFamily Lifetime ISA.
Lifetime ISA provider charges
OneFamily's Lifetime ISA fees
We charge just one straightforward fee for managing your lifetime ISA, the Annual Management Charge (AMC).
Our AMC is 1.1% of the total value of your lifetime ISA.
The AMC covers the cost of managing your investment each year. The charge is calculated daily but you'll only pay it once a year, and it's applied to the fund as a whole, so it’s never taken directly from your account.
We don't charge you any fund-level fees. If you're comparing fees from different providers, it's worth checking if there are other fees they may ask you to pay on top of the AMC, especially if it seems a lot lower.
There may be other costs in some rare circumstances, such as reissuing cheques. But if we need to charge you for anything else, we'll let you know before we do.
You can find out more in the Key Information Documents for each of the three funds you can choose to invest your Lifetime ISA in: OneFamily Global Select 35% Shares, OneFamily Global Select 65% Shares and OneFamily Global Select 100% Shares.
Do OneFamily's Lifetime ISA charges ever change?
Our charges could change in the future. This can happen if the costs of running the fund, or of providing account services to you, go up.
But we'll always contact you in writing before we make any changes and you'll have the option to transfer to a different provider if you're not happy with any changes we make (we don't charge you to transfer).
This is part of the agreement we make with you when you open your lifetime ISA with us, which aims to protect your money and interests at all times.
Lifetime ISA minimum deposit
We believe in the power of starting small. That’s why we have a low minimum opening deposit - you can open a OneFamily Lifetime ISA with a £25 monthly direct debit or a £250 lump sum.
Our lifetime ISA invests in stocks and shares because we believe this gives it the best chance of out-growing inflation.
Returns aren't guaranteed and we recommend that you keep your money invested for five years or more.
Money invested for longer periods can increase the potential of better returns. This is because you'll have longer to ride out any fluctuations in the stock market.
The lifetime ISA government withdrawal fee
You will only be charged the lifetime ISA government withdrawal fee if you:
- Withdraw money from your lifetime ISA within 12 months of your first payment into it
- Take money directly out of your lifetime ISA. As you can only withdraw money to buy your first home, this has to be through a conveyancing solicitor (you'll simply send them a form asking them to do this)
- Use your lifetime ISA to buy a home worth more than £450,000, buy without a mortgage or buy a property you don't intend to live in.
The exception is if you are aged 60 or over. From your 60th birthday, you can withdraw as much as you like directly without being charged the penalty fee.
How much is the lifetime ISA government withdrawal fee?
The lifetime ISA government withdrawal fee is 25% of everything you withdraw from your account.
To put it another way, you will only get 75% of the money you withdraw.
So, the less you take out, the smaller the fee you'll pay.
When you withdraw money, an additional amount is taken out to cover the fee and this is sent to HMRC on your behalf.
How is the government withdrawal fee calculated?
As you have to pay a 25% fee on everything you take out, you will only get 75% of any money you withdraw.
Let's say you want to move £200 from your lifetime ISA into your current account. To get your hands on the full £200, 75% of the withdrawal needs to be £200.
And, if 75% = £200, then 25% = £66.
So, when you request £200, the total amount to come out of your lifetime ISA will be £266.
£66 would be sent to HMRC and £200 would come to you.
This can be confusing because you might expect to pay just 25% of the £200 but, remember, it's 25% of everything you withdraw, which includes the money for the fee itself.
The calculation:
(The amount you want ÷ 75) x 100 = the amount that will come out of your account
Is the government withdrawal charge just paying back the lifetime ISA government bonus?
No. The withdrawal penalty charge will always be more than the amount of bonus you've received on the money you're withdrawing.
- The government bonus is 25% of everything you pay into your lifetime ISA.
- The government withdrawal fee is 25% of everything you withdraw from your lifetime ISA (including the bonus and the fee itself).
So, if you paid in £200, you'll have received an extra £50 (25% of £200), leaving you with a balance of £250 (ignoring any investment returns).
If you then withdrew that full £250 (and broke the LISA rules to do so), you'd get back only £187.50, while HMRC would get £62.50.
What if I need to take money out of my lifetime ISA?
You can! The money in your lifetime ISA is yours and you can withdraw it at any time if you need it, you just need to be aware that HMRC will charge you to do so. Which might make you think twice!
Open a OneFamily Lifetime ISA
Our Lifetime ISA comes with a 25% government bonus, worth up to £1,000 a year!
Our Lifetime ISA invests in stocks and shares, so the value is likely to go up and down over time. This is normal for this type on investment, but it means there is a risk you could get back less than you put in if you withdraw at a time when the value is lower.
