Save for your first home with a market-leading Cash Lifetime ISA

Save up to £4,000 each tax year and get a 25% government bonus. The Moneybox Cash Lifetime ISA offers a market-leading rate of 1.25% AER variable.

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We are accepting digital transfers from most providers into our Lifetime ISA. Please get in touch with our customer service team for more information.

An introduction to the Moneybox
Cash Lifetime ISA

How Lifetime ISAs work

  • 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 Cash Lifetime ISA offers a market-leading rate of 1.25% AER variable.

What else should I know?

  • There are no fees for this account.
  • This savings account is powered by Investec. Investec 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 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).

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Summary Box

Moneybox Cash Lifetime ISA

  • 1.25% 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 £1,265.17
  • 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 £1,012.5, 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’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.
  • 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 Investec. Investec 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.

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

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.

Risk Warning

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.

Risk Warning
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