How to transfer your Lifetime ISA

Can you transfer a Lifetime ISA?

Yes, you can transfer a Lifetime ISA from your current provider to another – it's your money, after all. It normally takes years to save for your first home, so it would be a bit limiting if you had to stick with the same provider for that entire time. Just like with current accounts, the Lifetime ISA you choose at first might not be the one you want to stick with for the long term.

How to transfer a Lifetime ISA

If you have a Lifetime ISA already with another provider like Moneybox, Hargreaves & Lansdown or Skipton, it’s really easy to transfer your Lifetime ISA to another provider. The process varies for each provider, but here’s how it works with the Tembo Lifetime ISA:

1. Download our award-winning app and follow the sign-up process. During the sign-up journey, we’ll ask you if you have a Lifetime ISA already. If you say yes and you want to transfer, we'll email you a digital form to kickstart the transfer process.
2. Fill out the transfer form and sign it. You'll need to know your current providers' details and your account details. As it's all digital, there’s no pen or paper required.
3. We then take care of the rest! We’ll get the money from your current provider over to your new account with Tembo. This can take 4-6 weeks, depending on how speedy they are!

This process works the same if you have a Stocks & Shares Lifetime ISA with another provider, and want to transfer your funds to our Cash Lifetime ISA. It also works on the flip side if you have a Cash LISA elsewhere but want to switch that to a Tembo Stocks & Shares LISA when you transfer.

You might be interested in: How to transfer a Help to Buy ISA to a Lifetime ISA

Why transfer your Lifetime ISA to Tembo?

The Tembo Lifetime ISA has the market-leading interest rate at 4.75% AER (variable) - excluding introductory offer periods*. This means that unlike other providers, our interest rate doesn’t drop after the first year. That means over 5 years a Tembo Cash Lifetime ISA would increase your deposit by hundreds versus the next best available rate. 

The Tembo Lifetime ISA has also been designed with first-time buyers in mind. It’s our mission to help make home happen for the next generation - and that includes helping you save up for your first home quicker. Our award-winning app brings together personalised money-saving ideas, spend analysis, and smart mortgage solutions that boost affordability by an average £82,000! Not to mention monthly cash giveaways, the ability to Team Up someone else you’re buying with and gift links so family and friends can put birthday money to good use.

How long does it take to transfer a Lifetime ISA?

It takes around 4-6 weeks for your savings to be transferred from your current Lifetime ISA provider to your new one. This is because your new provider has to do the paperwork at their end, and then your current provider has to transfer the funds. Some providers are quicker at transferring funds than others, but your money stays safe and secure throughout the process. 

With the Tembo app, you’ll be able to easily see when the money drops in your account, and we’ll also send you an email when you're all set.

What happens to your time to buy when you switch Lifetime ISA providers?

Don’t worry, switching LISA providers doesn’t affect when you can buy a house! You have to have your Lifetime ISA open for 12 months before you can use it penalty-free to buy your first home. But luckily, that timer doesn't reset if you switch LISA providers.

What if you’re transferring more than the £4,000 annual LISA limit?

If you're doing a Lifetime ISA to Lifetime ISA transfer, you can transfer your entire balance in one go, even if this is more than £4,000.

If you are transferring funds from a Help to Buy ISA, or another ISA like a Stocks & Shares ISA, this is technically not a straight-up transfer because they are different account types. You can only transfer money from these accounts into a Lifetime ISA to take you to your annual £4,000 allowance. 

So if you have £0 saved in your LISA currently, you can transfer in up to £4,000 from another ISA. If you have saved £3,000 into your LISA already this tax year, you can only transfer £1,000 from another ISA. Your Lifetime ISA annual allowance restarts at the beginning of the new tax year, which is on the 6th of April every year.

Can I transfer my Lifetime ISA to another person?

No, you cannot transfer your Lifetime ISA to another person, as it was opened in your name and can't be moved. To give the money to someone else, you'd need to withdraw your funds and close the account, then give the money to the other person. But doing this would incur the 25% government withdrawal penalty on your savings. 

Learn more: Lifetime ISA withdrawal penalty: What is it and how to avoid it?

*Market-leading is defined as Tembo having the best Lifetime ISA interest rate excluding introductory offer periods. Rates are accurate as of 13th March 2024, but are subject to change.