Introducing our Cash Lifetime ISA

We are excited to introduce the first Moneybox cash product, helping first time buyers save for their future! Our new Cash Lifetime ISA allows you to earn a great interest rate (AER variable) on top of all your savings and bonuses.

We know getting a foot on the property ladder can seem like a pipe dream… but with an annual government bonus, plus our market-leading rate, your dream home could be closer than you think. 

Here are our top 3 Lifetime ISA must-knows

What is the Lifetime ISA?

The Lifetime ISA (LISA) is a product designed by the government to help you to purchase your first home. It can also be used to save towards your retirement (see our Lifetime ISA FAQs for more info on using the Lifetime ISA for retirement). You can open a Lifetime ISA if you are a UK tax resident aged 18-39. 

How much can you save?

You can pay in up to £4,000 per year and you get a 25% government bonus on all savings. That means for every £4 you save, you get £1 for free. So, if you pay in the maximum £4,000 you’ll receive a £1,000 bonus each year. Kerching! Govt. early withdrawal charge applies.

Cash Lifetime ISA vs. Stocks & Shares Lifetime ISA

Our newly launched Cash LISA works like a cash savings account, in that you will earn interest on the money you pay in. Our market-leading interest rates of 1.25% (AER variable) are powered by OakNorth Bank (for users who signed up before 23rd April 2020) and Investec (for users who signed up after 24th April 2020). The interest accrues daily and is paid monthly.

With a Stocks & Shares Lifetime ISA, rather than getting interest like you do with a Cash Lifetime ISA, you invest your money in funds. Investing over the long term (5 or more years) can offer higher returns, but remember that the value of investments can go up and down, and you may get back less than you invest. 

To open a Moneybox Cash Lifetime ISA, please make sure you are on the latest version of the Moneybox app (version 6.0). Then head to Settings > Accounts > Lifetime ISA.

To find out more, see our Lifetime ISA FAQs