The UK’s market-leading Lifetime ISA

  • Earn a first year rate of 5.00% AER (variable), then 3.80%
  • Get a 25% government bonus on every pound you save
  • Save up to £4,000 and get a £1,000 bonus free each year

Open a Cash Lifetime ISA with just £1.

A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid into your Lifetime ISA.

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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 (capital at risk).

Which is right for you?
ISA account ISA account ISA account

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 3.80% base rate (variable), and a fixed one-year bonus interest rate of 1.20%. 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.

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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?

What Mortgage Awards - Moneybox - 2023 Winner

Borning Money Best Buy Award - Moneybox - Customer Service - 2021

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

Plus 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.

Weekly deposit of

£

Government bonus

£

Interest on your LISA

Other savings account

.

Our calculation has not taken into account any potential tax on interest earned - tax treatment depends on your individual circumstances and may be subject to change in the future.

£

Balance in -- years

£

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

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Learn more about the Moneybox Cash Lifetime ISA

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Everything you
need to know

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) 3.80% 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 1.20% AER variable for 12 months) £1,310.59
Estimated balance after 24 months (only the underlying interest rate of 3.80% is paid for months 13 to 24) £1,360.39
  • 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 1.20% AER variable for 12 months) £1,050.00
Estimated balance after 24 months excluding the government bonus, (only the underlying interest rate of 3.80% is paid for months 13 to 24) £1,089.90
  • 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.

What is a Lifetime ISA?

The Lifetime ISA (LISA) is a product designed by the government to help you to purchase your first home…

When does the interest on my Cash Lifetime ISA get paid?

The interest on your Cash Lifetime ISA accrues daily and is paid on the 1st of every month. Please…

How does the Cash Lifetime ISA bonus interest rate work?

If you signed up for a Moneybox Cash Lifetime ISA on or after 17th August 2020, your account has…

When are LISA bonuses paid out?

Lifetime ISA bonuses are paid out at the end of each month, and are based on your total contributions…
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The Moneybox guide
to Lifetime ISAs

Learn more

It's important you know

A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid into your Lifetime ISA.

Tax treatment depends on individual circumstances and may be subject to change in the future.

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

Capital at risk. All investing should be for the longer term. The value of your investments can go up and down, and you may get back less than you invest. Tax treatment depends on individual circumstances and may be subject to change in the future.

A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid into your Lifetime ISA.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Payments you make into your pension won’t be accessible until the minimum pension age (currently 55, increasing to age 57 from 2028). Tax treatment depends on individual circumstances and may be subject to change in the future.

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