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

  • Earn a market-leading interest rate of 5.00% AER (variable). This includes a 4.00% base rate (variable) and a fixed one year bonus interest rate of 1.00%
  • Save up to £4,000 a year
  • Get a 25% government bonus on everything you put in

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What is a Lifetime ISA?

A Lifetime ISA is an individual savings account that can help you buy your first home, faster. There are two types: a Cash Lifetime ISA, and a Stocks & Shares Lifetime ISA. A Cash Lifetime ISA lets you earn interest on your money, while a Stocks & Shares Lifetime ISA invests your money in the stock market.

Cash Lifetime ISA vs Stocks & Shares Lifetime ISA

A 25% government penalty applies if you withdraw money from your Lifetime ISA for a reason other than buying your first home or for retirement, and so you might get back less than you paid into your Lifetime ISA.

What is a Cash Lifetime ISA?

A Cash Lifetime ISA is an individual savings account that’s designed to help people save for their first home, or for retirement. That’s because the government gives you a 25% bonus on top of any money you save. You can save up to £4,000 each tax year into a Cash Lifetime ISA – so, for every £4 you contribute, you’ll get £1 for free.

You can use a Cash Lifetime ISA to buy your first house up to the value of £450,000 – anywhere in the UK. Your Cash Lifetime ISA needs to be open for 12 months before you can use it to buy a house, and it isn’t ‘open’ until you’ve made your first deposit.

Cash Lifetime ISA interest rates

Cash Lifetime ISA interest rates will vary according to the provider you choose. With the Moneybox Cash Lifetime ISA, you’ll get a market-leading  interest rate of 5.00% AER (variable), which includes a 4.00% base rate (variable), and a fixed one-year bonus interest rate of 1.00%. That’s on top of the annual 25% government Cash Lifetime ISA bonus.

When are Lifetime ISA bonuses paid?

If you’ve already got a Cash Lifetime ISA but you’d like to earn the interest rate that we offer, it’s easy to transfer it over to Moneybox. You can find out how by downloading the app, and going to Settings > Transfers.

How to open a Cash Lifetime ISA

To open a Cash Lifetime ISA, just download the app, open a Lifetime ISA, and deposit at least £1 to get your Lifetime ISA clock ticking. Remember, it needs to be open for 12 months before you can use it to buy a house. 

There aren’t any fees to open a Moneybox Cash Lifetime ISA – and your money is held with third-party banks, who are covered by the Financial Services Compensation Scheme (FSCS) up to £85,000.

Who can open a Lifetime ISA?

How much do I need to save?

See how you can boost your savings with a Moneybox Lifetime ISA.


Govt. withdrawal charge may apply. Remember, interest rates may change so projections are not a guarantee of future value.

Let’s make this happen

Set up a weekly deposit of

£ --,--

into a Moneybox Lifetime ISA Account

an additional weekly deposit of

£ --,-- i

into another savings account (calculated at x.x% interest).

Your total government bonus

£ --,--

Your breakdown

To calculate your weekly deposit we've taken into account the accumulated value of your contributions over 5 years, including the government bonus you'll receive and interest you will earn. We've assumed you continue with these settings and interest rates don’t change.




Govt. withdrawal charge may apply. Remember, interest rates may change so projections are not a guarantee of future value.

Learn more about the Moneybox Cash Lifetime ISA

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Summary Box

Moneybox Cash Lifetime ISA

Interest rate (including a bonus rate of 1.00% AER for 12 months) 5.00% AER (variable)
Interest rate (after first 12 months) 4.00% 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.
  • The bonus interest rate will be paid for 380 days from the day you complete the application for your first Moneybox Cash Lifetime ISA. The bonus interest rate does not apply to existing Moneybox Cash Lifetime ISA customers or to customers who switch their Lifetime ISA within Moneybox after the first 12 months.
  • 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.
Estimated balance after 12 months (underlying interest rate with a bonus rate of 1.00% AER variable for 12 months) £1,310.64
Estimated balance after 24 months (only the underlying interest rate of 4.00% is paid for months 13 to 24) £1,363.07
  • 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 24 months.
  • The government pays a 25% bonus on your contribution, which is paid within 54 days of your contribution.
  • The estimated balance excluding the government bonus or if you transfer in another Lifetime ISA, on which your 25% bonus has already been paid can be seen in the table below:
Estimated balance after 12 months excluding the government bonus (underlying interest rate with a bonus of 1.00% AER variable for 12 months) £1,050.00
Estimated balance after 24 months excluding the government bonus, (only the underlying interest rate of 4.00% is paid for months 13 to 24) £1,092.00
  • 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.
  • Please note that your Cash Lifetime ISA account opening date is the day after Moneybox collected your first Cash Lifetime ISA contribution or the date we receive your ISA or Lifetime ISA transfer in request. 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 cash to buy your first home (subject to the conditions set out in the questions and answers below) or anytime after you are 60 years old.
  • You need to buy a house with a mortgage (excluding a “Buy to Let Mortgage”), and you must use a conveyancer or solicitor to act for you in the purchase of the property.
  • Your Cash Lifetime ISA must have been open for at least 12 months. Please note the 12 months period will start from the day after Moneybox collected your first Cash Lifetime ISA contribution. If you have transferred Lifetime ISA to Moneybox from another provider the 12 month start from the date you paid into the original Lifetime ISA.
  • If you make a withdrawal before the Cash Lifetime ISA has been open for 12 months or for a reason other than buying your first home or after you are 60 years old then you will be charged the government penalty of 25% of the withdrawn amount. This may mean that you receive back less than you put in and we’ve provided an example of this in the questions and answers below.
  • 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.

Lifetime ISA questions & answers

Read more information about the Lifetime ISA. If you have any questions, please chat to us in the app or email us via support@moneyboxapp.com.

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It's important you know

If you withdraw money for any reason other than buying your first home (up to £450,000) or retirement, you’ll pay a government charge of 25% on the amount you withdraw. This means you’ll get back less than you’ve put in.

Risk Warning

Introductory Bonus Terms and Conditions

 

Eligibility

Distribution

Other

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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