With the Lisa there is a 25 per cent penalty for withdrawals if consumers take money out early.
Ms Springall added: "With growing scepticism on Lisas by MPs, it remains to be seen whether more providers will feel confident enough to enter the cash market, as so far it has had little interest.
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"Perspective house buyers may instead turn to Help to Buy Isas where there is much more choice and better returns - those looking to use a Lisa for the later years may prefer to choose an investment version over cash but must be sure to check in on its performance."
rachel.addison@ft.com
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