Can anyone recommend a low-risk lifetime ISA for long-term savings?

[LisaIsa]

Can anyone help about lifetime Isas.

Financial advice is currently not an option, but I can invest 4k and I believe with a LISA I can get 1k from the government.

Can anyone recommend one, risk adverse but don't need access to the money.

I know that is a lot to ask on a forum, but thanks if you can help.

Check this out: Lifetime ISA (LISA): how they work & best buys
LISAs are covered by FSCS up to £120K if the bank fails so fairly safe.

Thank you @ThirdStorm

LISA are for very specific reasons.
If you may want more flexibility on access then you may be better off with a normal ISA.

What risks are you looking to avoid?

You can’t avoid them all - if you save in cash then you won’t see your balance go up and down (no volatility risk) but chances are you won’t get the same returns as if it was invested (so you risk not maximising your savings) or even not keeping pace with inflation (aka the value of your savings reduces in real terms).

@TeenToTwenties buying a first home, and I am happy to have 4K inaccessible.

@SlipperyLizard stocks and shares I guess. I would rather small growth than risk having less than I put in. The state boost it by 1k a year which for me would be a good investment I think.

The £1k is only for the new £4k each year, I expect you know that really but it isn't clear. You can't put £4k in and then 4 years later have £8k

Sorry, I agree I'm not clear, and I genuinely know nothing about all this which is why I'm posting on here, but I did know that.

I can put in 4k every year, so it would seem that this is a safe way to save, with a good bonus plus interest (which I get will be less than elsewhere)

I guess I'm concerned as it almost feels too easy, I don't want to mess this up, because saving 4k a year is going to be a lot of work for me, but I'm paying more in rent than I would on a mortgage so I'm throwing everything at getting a deposit.

I have a LiSA with the Nottingham. I’m saving for retirement. You are correct that every year if you pay in 4k the government will top up to 5k.

Thanks

I think I'm going to go with Moneybox, high first year interest rate and I can move it at any time

I've read loads, i hope I'm doing the right thing.

When are you planning to buy? There’s a risk with S&S that you might lose money if it’s only a few years, so if the money box one is a fixed interest rate that does make sense if you’re planning to buy soonish

Am I right in thinking LISAs are for those under 40? What would over 40s do?

Yes for under 40s.

I am not sure how that is legal

Hi there. I have a Lisa too. Remember that even if you can move the funds you can’t take them out except for the specified reasons (first home etc) without losing a lot -
they take away slightly more than the bonus percentage.

I think they are brilliant. The £1k boost means I worry a lot less about S&S returns so have felt confident doing a S&S isa for the first time (even though theoretically I’ve always known S&S are better for the long term, I hadn’t ever acted on it before).

TBA all is not lost if you save less than £4K one year. Eg if you put in £2k you’d get £500.

Me neither. Im over 40 - what would I do?!

You'd just have a normal ISA. Or put money into your retirement funds.

Thanks.
Would 'retirement funds' just be a separate savings pot? As opposed to a specific financial product?

Even if not earning you can put £2880 into a proper retirement fun annually and the government will top it up to £3600. If earning you can put more in tax free.
With a retirement fund you can't access it until a fixed age (55?) and then you can take 25% out tax free if you want to, or as and when buy an annuity of other options. I am not a financial advisor - take advice!

So if you are happy to lock the money away you can get tax concessions. But if not you can save in a separate pot (but that probably won't have such good returns).

If you want no or low risk then get a cash lifetime ISA which will have a guaranteed interest rate