Save for your first home with the market-leading Cash Lifetime ISA
Save up to £4,000 each tax year and get a 25% government bonus. Our market-leading Cash Lifetime ISA offers an interest rate of 1.1% – this includes a 0.5% AER variable rate, plus a 0.6% introductory bonus rate in the first year.
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An introduction to the Moneybox Cash Lifetime ISA
What is a Lifetime ISA?
- The Lifetime ISA is a product designed by the government to help people aged 18-39 buy their first home or save for retirement.
- You can save up to £4,000 each tax year and get a 25% government bonus on all savings.
- So, if you pay in the maximum £4,000, the government will top it up with an additional £1,000. Pay in £1,000 and you’ll get £250. Kerching. You can do this every year until you’re 50.
- Our market-leading Cash Lifetime ISA offers an interest rate of 1.1% - comprised of a 0.5% AER variable rate, plus a 0.6% introductory bonus rate in the first year.
What else should I know?
- There are no fees for this account.
- This Moneybox savings account holds your savings via third party banks. These banks are covered by the Financial Services Compensation Scheme so your savings are protected up to £85,000. You can find out more at Moneybox FSCS Protection.
- You can use the Lifetime ISA to buy a house up to the value of £450,000 anywhere in the UK but must have had the account open for at least one year before you withdraw money to do this.
- If you need to withdraw money for any reason other than your first home or retirement, you’ll pay a government charge of 20% on the value of your withdrawal. This means you will lose any government bonuses you have earned. Please note this is a temporary reduction from 6 March 2020 - 5 April 2021. After this period the government withdrawal charge will revert to 25% (you'll pay an additional £6.25 for every £100 deposited).
- We are accepting digital transfers from most providers into our Lifetime ISA. Please get in touch with our Support team for more information.
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Summary Box
Moneybox Cash Lifetime ISA
0.5% tax free per annuum/AER variable
| Interest rate with bonus (includes a bonus of 0.6%) | 1.1% tax free per annum/AER variable |
- Interest is earned daily.
- Interest earned due to the underlying interest rate is paid on the 1st day of each month, rounded down to the nearest penny
- Bonus interest is paid on the 1st day of your 13th month.
- Yes – the underlying interest rate is variable, so it can go up or down, although the one-year bonus interest rate will not change.
- We will inform you as soon as possible, via the Moneybox App, of any change to the interest rate.
- There are no fees for this account.
£1,263.34
| Estimated balance after 24 months (only the underlying interest rate of 0.5% is paid for months 13 to 24) | |
| Estimated balance after 12 months (underlying interest rate with a bonus of 0.6% AER variable for 12 months) | £1,016.08 |
- The account is available to UK residents aged 18 to 39. You can transfer an existing Cash Lifetime ISA at any age.
- You may only open and manage the account via the Moneybox app.
- You can transfer in existing Lifetime ISAs or make contributions by direct debit of up to £4,000 in total each tax year.
- Joint accounts are not allowed.
- You can withdraw money to buy your first home (subject to the conditions set out in the questions and answers below) or any time after you are 60 years old.
- Your Cash Lifetime ISA must have been open for at least 12 months.
- If you withdraw in the first 12 months of opening the Lifetime ISA or for any reason other than buying your first home or retirement, you’ll pay a government charge of 20% on the value of your withdrawal. This means you will lose any government bonuses you have earned. Please note this is a temporary reduction from 6 March 2020 – 5 April 2021. After this period the government withdrawal charge will revert to 25% (you’ll pay an additional £6.25 for every £100 deposited).
- The government penalty is not charged in the event of your death or terminal illness.
- Moneybox also offers an additional 0.6% introductory bonus rate on savings for the first year.
- The Lifetime ISA is a government savings scheme and the rules, including tax benefits, could change in the future.
- Interest is paid tax-free. This means that you do not pay income tax on the interest earned in the Cash Lifetime ISA.
Questions & answers
If you have any questions, please chat to us in the app or email us via support@moneyboxapp.com.
What is the Lifetime ISA?
The Lifetime ISA (LISA) is a product designed by the government to help you to purchase your first home…
What is the difference between a Cash and Stocks & Shares Lifetime ISA?
We offer two types of Lifetime ISA: A Cash Lifetime ISA – this works like a cash savings account…
If I already have a Lifetime ISA with another provider, how can I transfer it to Moneybox?
We’re able to transfer from most ISA and LISA providers into the Moneybox Lifetime ISA. To get started, just request…
When does the interest on my Cash Lifetime ISA get paid?
The interest accrues daily and is paid monthly.
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Covered by the FSCS
This Moneybox savings account holds your savings via third party banks. These banks are covered by the Financial Services Compensation Scheme so your savings are protected up to £85,000. You can find out more at Moneybox FSCS Protection.
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We use 256-bit TLS encryption for all your personal information and will never share any of your details with third parties without your consent.
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If you have any questions, you can chat to us in the app or email us via support@moneyboxapp.com.
It's important you know
If you withdraw money for any reason other than buying your first home (up to £450,000) or retirement, there is a 20% government withdrawal charge, meaning you will lose any government bonuses you have earned. Please note this is a temporary reduction from 6 March 2020 – 5 April 2021. After this period the government withdrawal charge will revert to 25% (you’ll pay an additional £6.25 for every £100 deposited). The Lifetime ISA is treated differently for tax purposes when compared to a pension. If you decide to opt out of your workplace pension and instead pay into a Lifetime ISA, you will not benefit from any employer-matched contributions into your LISA and it may affect your current and future entitlement to means-tested state benefits. If considering the Lifetime ISA for the purposes of retirement, we recommend you speak with an independent financial advisor.
Introductory Bonus Terms and Conditions
Eligibility
- The bonus interest rate is available to all new Moneybox Cash Lifetime ISA customers from 10am on the 17th August 2020 until further notice.
- The bonus interest rate will be paid for 380 days from the day you complete the application for your Moneybox Cash Lifetime ISA.
- A new Moneybox Cash Lifetime ISA customer is defined as a customer who: Has not previously opened a Lifetime ISA with Moneybox (this includes either a Stocks & Shares Lifetime ISA or a Cash Lifetime ISA);
- Has completed the application process and successfully submitted their declarations for the Moneybox Cash Lifetime ISA.
- Existing Moneybox Lifetime ISA customers (either Cash or Stocks & Shares) who close and re-open their account are not eligible.
- Customers are not eligible if they:
- Have a balance of £0 in their Moneybox Cash Lifetime ISA at the end of the period and have not made an authorised withdrawal (i.e. buying your first home, aged 60 or over, or terminally ill with less than 12 months to live);
- Cancel their Moneybox Cash Lifetime ISA or transfer out to another provider during the offer period.
Distribution
- The bonus interest rate is in addition to the underlying interest rate on the Moneybox Cash Lifetime ISA.
- The bonus interest rate will be calculated daily and paid at the end of the offer period.
- The bonus interest rate will be paid on balances resulting from all contributions made into your Lifetime ISA during the offer period, including transfers from other providers.
- The bonus interest rate is guaranteed for the whole offer period at the rate quoted when you opened your Cash Lifetime ISA. For future customers, the bonus interest rate may be modified or removed.
- The bonus interest will be paid on the first day of the month following the end of the offer period i.e. if you complete your application for your Cash Lifetime ISA on 14th August 2020, your bonus will be paid on 1st September 2021.
- The bonus interest will be paid into your Moneybox Cash Lifetime ISA as interest unless your Moneybox Cash Lifetime ISA balance is £0 and you have made an authorised withdrawal, then we will transfer the bonus to your linked bank account.
- Note that the bonus interest will not be treated as a contribution, so you will therefore not receive a 25% government bonus on the bonus interest amount.
Other
- If we believe that any customer has not adhered to these terms, or has, in any way, attempted to manipulate the offer and / or process, we reserve the right to withhold any promotions from that customer.
- Digital Moneybox Limited is the sole arbiter of these rules, our standard terms and conditions remain in force, and are not affected in any way by this offer.
It's important you know
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest.