Cash ISA top FAQs answered

We’ve answered the top questions from new Cash ISA customers to get you started on your savings journey.

What is a Cash ISA?

A Cash ISA is an individual savings account that you can use to earn tax-free interest on your money. With the Moneybox Cash ISA, you’ll earn 5.16%* AER (variable) on balances of £500 or more, which includes a bonus rate of 0.91% for your first 12 months.

A lower interest rate of 0.75% AER (variable) applies whenever your account balance is less than £500. It also applies for the rest of your current 12-month period from your fourth withdrawal. The number of withdrawals you can make without impacting your rate will reset each year on the date you opened your Cash ISA.

*New customer rate as of 26/03/2024. 5.16% AER (variable) includes a bonus rate of 0.91%. A lower rate of 0.75% AER (variable) applies if account conditions aren’t met.

 

When is my Cash ISA interest paid?

Your interest is accrued daily and paid into your account yearly on the date you opened your Cash ISA. The rate you earn is subject to the conditions outlined above.

The interest rate is variable, and we’ll keep you informed if it changes. AER stands for annual equivalent rate and illustrates what the interest rate would be if it was paid once a year.

 

What’s my annual allowance?

You can save up to £20,000 across your ISAs each year – which is also the maximum you can pay into a Cash ISA each tax year. The interest you earn with a Cash ISA is completely tax-free. 

Here are the different maximum amounts that you can pay into each type of ISA. The £4,000 for a Lifetime ISA comes out of your £20,000 total allowance. So if you max out a Lifetime ISA, you’ll have £16,000 remaining for your Stocks & Shares or Cash ISA. Your Junior ISA allowance is in your child’s name and does not come out of your personal allowance. 

Can I transfer other Cash ISAs into Moneybox?

Yes, you can transfer any ISAs you hold with other providers into a Moneybox Cash ISA by heading to Settings > Transfer > Transfer in > Cash ISA. Requests are made entirely in-app and only take a few minutes! 

ISA rules and T&Cs apply.

 

Request transfer

 

What’s the difference between a Cash ISA, Stocks & Shares ISA, and Lifetime ISA?

There’s loads more content available in-app. From expert commentary to step-by-step guides, we’ve got it all.

 

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All investing should be long term (min. 5 years). The value of your investments can go up and down, and you may get back less than you invest.

A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid into your Lifetime ISA.