Help! Lifetime ISA mistake

[Grace1980]

I’m a novice when it comes to investments / ISAs etc. My mum told me about lifetime ISA and as I don’t have a pension I decided to open a cash one. I had planned to open with Skipton but saw that Hargreaves Lansdown were offering them too. So I just opened one online with then tonight - but I realised that they don’t pay interest (aside from the governments 25% bonus) whereas Skipton pay 0.75%. Obviously I want the interest too! I don’t want to invest it in stocks and shares lifetime isa, just cash.

So..is it possible to cancel the HL one I’ve opened?! Is there a cooling off period? And will I then be able to open one with Skipton?! Argh! I can’t believe I’ve been so stupid :(

You can open as many as you like (and transfer the cash between them) as long as you don’t exceed the £20k pay in limit each year.

Should be a 14 day cooling off period. Ring HL today and explain.

Don't put money in and out this year. See if Skipton are allowing transfers. Or cancel the HL one big no money has yet been transferred.

You do realise that putting money into a S&S ISA will generally give a better return over the years you will have it than a 0.75% cash one don't you? All our ISAs are in S&S and they have grown steadily over the last 20 years.

Yes it can drop, but the stock market is generally cyclical and any falls are usually offset by eventual rises. You can select your fund(s) and then drip feed money in monthly, from the lump sum you have put in there initially.