Lifetime ISA charges
We’re committed to transparent and fair charges that offer you excellent value, and are among the lowest in the market.
- Setting up your account - FREE
- Holding cash in your account – FREE
- Paying money into your account - FREE
When you invest in a Lifetime ISA with us, the charges you pay are made up of:
Account charge
This is our annual charge for managing your account, which is payable monthly - there is a separate charge for holding shares or funds.
| Shares account charge: | 0.25% (max £3.50 per month) |
| Funds account charge: | 0.25% |
Dealing charges
This is the charge you pay each time you buy or sell shares or funds.
| Shares dealing: | £5.00 |
| Frequent shares dealing charge: (if you had 10 or more share deals in the previous month) |
£3.50 |
| Fund dealing: | £1.50 |
Shares – includes ETFs, investment trusts, gilts and bonds
Funds – includes unit trusts, OEICs and structured products
Example of how we calculate your charges
Meet Joe
Joe has a Lifetime ISA with us valued at £4,850. That includes £1,200 invested in shares, £3,600 invested in funds and £50 in cash. Below you can see what account and dealing charges Joe would pay (you can click between the tabs to see the full charges breakdown).
Portfolio value:
£4,850
| £1.00per month* | |
| £1,200 in sharesCalculation: 0.0025 x 1,200 / 12 | £0.25 |
| £3,600 in fundsCalculation: 0.0025 x 3,600 / 12 | £0.75 |
| £50 in cash | No charge |
Dealing charges depend on how many investments you buy and sell. The example below illustrates Joe’s dealing activity in a given month:
| £6.50 | ||
| 1 share deal | Calculation: £5.00 x 1 | £5.00 |
| 1 fund deal | Calculation: £1.50 x 1 | £1.50 |
Use our charges calculator to estimate the charges you’ll pay for investing in a Lifetime ISA with us.
Important to know about charges
The investments you choose may have their own charges, such as charges from a fund manager. These are in addition to our account charges. You can learn more by reading the investment’s key investor information document. We’ll automatically take all account charges from your Lifetime ISA monthly. You’ll need to keep cash in your account to pay any charges.
Other charges
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International dealing chargesYou will pay our standard dealing charges to buy international shares. In addition, there is a foreign exchange charge on international shares and foreign currency funds. For full details please visit our international dealing page.
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Other dealing charges (per deal)
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Government tax and levies (per deal)
UK stamp duty 0.5% on purchases of UK shares PTM (Panel on Takeover and Mergers) £1 on UK share deals over £10,000 Irish stamp duty 1% on purchases of Irish shares French financial transactions tax 0.3% on purchase of certain French shares Italian financial transactions tax 0.1% on purchase of certain Italian shares Spanish financial transactions tax 0.2% on purchase of certain Spanish shares For information on other overseas transactions tax that apply, see our international dealing page.
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Transferring account(s)
Transfer account to another provider No charge
For more information on all our charges, and how they're applied, see our full list of charges.
We'll take all charges from your Lifetime ISA, unless you've requested otherwise. These charges are effective from 1 April 2024. VAT is only applicable where indicated.
You need to make sure there’s enough cash in your account to cover our charges when they’re due.
You can also hold cash in your Lifetime ISA while you're deciding where to invest. That’s why we pay interest on cash you hold. You can see our latest cash interest rates as well as our previous interest rates. Remember that we change our rates from time to time.
Frequently asked Lifetime ISA questions
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How do I pay my monthly account charges?
We'll collect your charges for your Lifetime ISA from the available cash you have in it. So you need to make sure you have enough cash in your account to cover charges when they're due.
We collect our funds and shares account charges monthly – usually within 20 business days of the month end. Our account charge is based on the mid-price value of your account’s investments on the last working day of the month. Fund managers may also have their own charges, which they’ll take out of the fund itself.
Your dealing charges are included in the contract total when you buy or sell an investment.
There's no account charge for holding cash in any of your investment accounts.
Pay your account charges from your Dealing account
If you prefer, you can pay the account charges for all your accounts (SIPP, LISA etc) from the cash in your Dealing account. To set this up, open a Dealing account if you haven’t already, then email customermaintenance@ajbell.co.uk to ask us to collect all your account charges from your Dealing account.
This will apply to all your existing accounts with us, as well as any you go on to open in the future – so there's no need to email us your request again.
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What happens if there isn't enough cash in my account to pay my charges?
If you don’t have enough cash in your account to cover charges, we’ll still deduct the amount due, which will make your account overdrawn. If you then add cash to your account, or receive cash from dividends or interest, it’ll go towards clearing the overdrawn amount.
If your account is still overdrawn, we’ll get in touch to ask that you add cash or sell investments to clear the overdrawn amount. As a final resort, we’d sell investments in your account to cover it (with a dealing charge of £5.00 per investment sold). We’ll normally sell units of your largest fund holding first.
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How do I qualify for the frequent dealing charge for shares?
The frequent dealing charge for shares is based on the number of shares deals you placed in the previous calendar month, across the accounts in your individual name (excluding any regular investment and dividend reinvestment deals). You need to place 10 or more online share deals in one month to qualify for the frequent dealing charge in the next.
For example, if you make 10 or more online shares deals in January, the frequent dealing charge of £3.50 will apply for February.
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For over 25 years, AJ Bell has made investing simple and affordable. We’re a 5x Which? Recommended Provider, with an award-winning range of accounts.
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