The Verdict
We used to say the lack of an ISA was the major drawback of Lightyear as it left savers and investors unable to take advantage of the ISA's tax advantages. But, as of January 2025, that's no longer the case. Lightyear now offers a Stocks and Shares ISA, as well as a Cash ISA and General Investment Account. Both ISAs are flexible (meaning you can take money in and out without it affecting your annual allowance), come with no withdrawal penalties, and there's no minimum deposit, which makes these attractive options. The Lightyear Cash ISA isn't the highest paying (it's currently offering 4.00% AER which isn't as good as our top recommended Cash ISA products
here), but it's not bad either, and certainly higher than most high street banks are paying, with possibly more flexibility.
If you're struggling to decide what to invest in, Lightyear's research tools will satisfy even seasoned investors. In-app earnings calls are a unique proposition here, and analyst estimates and price targets are all free to access. Want to know how many analysts recommend you buy, hold or sell? It’s all available within the app. That's an unusually broad range of tools for a simple investing solution, and makes Lightyear stand out.
Assets are limited to stocks, Money Market Funds and ETFs, but the selection will be ample for most new or intermediate-level investors. You'll also have access to fractional shares, meaning you can own a piece of big-value stocks without needing to pay the hefty price tag of a full single stock. What's more, Lightyear has just removed commission on all its assets. With no account fees and no commission on trades, all you're paying for is the fund fee and currency conversion costs if you're investing in a foreign stock.
Lightyear has recently added another product too - a Money Market Fund that they're calling a 'Vault'. Money Market Funds (MMFs) are growing in popularity thanks to their low risk nature. They allow you to gain some of the security of a cash savings fund, but often with a higher rate of interest than you'll find on an ordinary savings account. Lightyear's Vault is currently paying a handsome 4.17% AER. Bear in mind though, that there is some risk associated with this as it's an investment, not a savings product. But it's very low risk, and a good potential return.
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Pros
- Excellent research tools for investors
- No commission and no account fees to pay
- 'Vaults' offers access to low-risk Money Market Funds
- FX fees are low
- Flexible ISAs with no minimum deposit
- No withdrawal penalties when withdrawing money from ISAs
- Multi-currency account for free
- 4.00% AER interest paid on cash ISA
Cons
- No mutual funds, bonds or gilts available
- Can't invest into a pension
- No customer service live chat
Research
This is Lightyear's strong suit. Research is one of the best I’ve come across, especially for inexperienced investors. Not only is it comprehensive in its range and offering, but it is well laid out and easy to access in a palatable way.
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Pros
- In-app recordings of earnings calls
- Analyst ratings
- Metrics including P/E ratios and market cap
- Price targets
- Past performance
- Earnings
- Events
- News
Safety
Nothing to worry about here in terms of safety. All the necessary precautions are in place including regulation by the Financial Conduct Authority and protection from the Financial Services Compensation Scheme.
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Pros
- Authorised and regulated by the Financial Conduct Authority
- Protection up to £85,000 from the Financial Services Compensation Scheme
- Biometric ID
Education
Education is very thin on the ground. In fact, I’m struggling to find anything of any significance within the app itself. On the website, there is a help section with some limited articles explaining some of the terminology, but nothing of much significance.
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