Introducing our new Cash Lifetime ISA - 1.4% AER

Saving for your first home? Get there sooner with a Lifetime ISA. Save up to £4,000 each tax year and get a 25% government bonus.

The Moneybox Cash Lifetime ISA offers a top rate of 1.4% AER variable and is covered by the Financial Services Compensation Scheme.

Already have a Lifetime ISA? Transfer it now to get the better rate.

Download the app and get started with £1.

How Lifetime ISAs work

  • The Lifetime ISA (LISA) is a product designed by the government to help people aged 18-39 buy their first home or save for retirement.
  • You can pay in up to £4,000 each tax year and the government pays a 25% 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, 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.
  • The Moneybox app makes it easy to manage and contribute to your savings. Plus, our new Cash Lifetime ISA offers a top rate of 1.4% AER variable. If you already have a LISA, transfer it now to get the best interest rate.

What else should I know?

  • There are no fees for this account.
  • This savings account is powered by our partner OakNorth. OakNorth is covered by the Financial Services Compensation Scheme so your savings are protected up to £85,000.
  • 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 25% on any sum you withdraw. The effect of this charge is you’ll lose the government bonus plus £6.25 per £100 you contributed.

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Summary Box

Moneybox Cash Lifetime ISA

  • 1.4% tax free per annum/AER variable
  • Interest is earned daily and paid on the 1st day of each month
  • Yes – the interest rate is variable, so it can go up or down
  • 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.
  • The estimated balance after 12 months would be £1,266.74
  • This assumes that:
    • The account is opened with £1,000 (not via a Lifetime ISA transfer (see below)
    • No further deposits or withdrawals are made
    • The interest stays the same for the full 12 months
    • The government pays a 25% bonus on your contribution, which is paid within 54 days of your contribution
  • The estimated balance after 12 months would be £1,014, excluding the bonus, if you transfer in another Lifetime ISA, on which your 25% bonus has already been paid
  • 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 will pay a government charge of 25%. The net effect of the 25% bonus, then 25% charge is that you lose £6.25 per each £100 you pay in.
  • The government penalty is not charged in the event of your death or terminal illness.
  • 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.

Safety and transparency

Covered by the FSCS

This savings account is powered by our partner OakNorth. OakNorth is covered by the Financial Services Compensation Scheme so your savings are protected up to £85,000.

Bank level encryption

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.

FCA regulated

We are authorised and regulated by the Financial Conduct Authority.

We're here to help

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

There is a 25% government withdrawal charge unless you use the money towards buying your first home (up to £450,000) or for retirement (from age 60).

Please note that a Lifetime ISA is treated differently for tax purposes when compared to a pension.

If you decide to opt out of your workplace pension to pay into a Lifetime ISA, you will not benefit from any employer-matched contributions 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 as considerations can be complicated.

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.

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