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Stocks and Shares ISA
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This answer won 500 Koody Coins

Hi Sue,

There isn't really a one size fits all answer to this as it very much depends on your tolerance for risk, investing horizon and goals.

For someone young, I would always suggest going higher on stocks and shares. This way, you can expect to receive higher average returns over time (with fluctuations along the way) and unlike cash the money is protected against inflation.

If however, you're close to retirement, investing in to stocks and shares for a major part of your portfolio may not be a good idea. Example: lets say you retire in 3 years and... (More)

Both have their place and it depends on what you want the lifetime ISA for and your time horizon.

e.g. if you’re using it on a first home in the next few years - cash is probably the better choice as a S&S ISA risks being down when you need the money for a deposit. 

if this is just for retirement and you’re using the LISA to get the government bonus - a stocks and shares Lisa is better as it will on average return more over the long term and protects against inflation 



This answer won 500 Koody Coins

@Becca21 This really depends on your timeframe, the level of risk you're willing to take, and your goals (saving for a house or retirement).

Savings (cash LISA) is usually best if you know you'll want the money in a shorter time period, say less than 3/5 years. There's no risk to losing money with savings as you're given interest from the bank as your return.

Investing (S&S LISA) is usually for longer term plans, like minimum 5 years. If you invest money today and you want to buy a house next year, the market may be down over the next... (More)