What is a Cash ISA?

A Cash ISA is an individual savings account that you can use to earn tax-free interest on your money. With the Moneybox Cash ISA, you’ll earn 5.17%* AER (variable) on balances of £500 or more, which includes a bonus rate of 0.47% for your first 12 months.

A lower interest rate of 0.75% AER (variable) applies whenever your account balance is less than £500. It also applies for the rest of your current 12-month period from your fourth withdrawal. The number of withdrawals you can make without impacting your rate will reset each year on the date you opened your Cash ISA.

*New customer rate as of 05/11/2024. 5.17% AER (variable) includes a bonus rate of 0.47% for the first 12 months. A lower rate of 0.75% AER (variable) applies if account conditions aren’t met. Interest is accrued daily and paid into your account yearly on the date you opened your Cash ISA. The rate is variable, and we’ll inform you if it changes. Tax treatment depends on individual circumstances and may be subject to change in the future.

 

When is my Cash ISA interest paid?

Your interest is accrued daily and paid into your account yearly on the date you opened your Cash ISA. The rate you earn is subject to the conditions outlined above.

The interest rate is variable, and we’ll keep you informed if it changes. AER stands for annual equivalent rate and illustrates what the interest rate would be if it was paid once a year.

 

What’s my annual allowance?

You can save up to £20,000 across your ISAs each year – which is also the maximum you can pay into a Cash ISA each tax year. The interest you earn with a Cash ISA is completely tax-free. 

Here are the different maximum amounts that you can pay into each type of ISA. The £4,000 for a Lifetime ISA comes out of your £20,000 total allowance. So if you max out a Lifetime ISA, you’ll have £16,000 remaining for your Stocks & Shares or Cash ISA. Your Junior ISA allowance is in your child’s name and does not come out of your personal allowance. 

Can I transfer other Cash ISAs into Moneybox?

Yes, you can transfer any ISAs you hold with other providers into a Moneybox Cash ISA by heading to Settings > Transfer > Transfer in > Cash ISA. Requests are made entirely in-app and only take a few minutes! 

ISA rules and T&Cs apply.

 

What’s the difference between a Cash ISA, Stocks & Shares ISA, and Lifetime ISA?

  • A Cash ISA is a cash savings account and does not offer any investment options. Instead, you’ll earn interest on your money completely tax-free. 
  • A Stocks & Shares ISA is an investment account that lets you invest your money in the stock market. You can pick a premade portfolio, or customise your investments to access more funds and US stocks. Any gains you make are tax-free.
  • A Lifetime ISA is designed to help you buy your first home, faster – or save for retirement. For every £4 you put into a Lifetime ISA, the government will give you £1 for free. Since you can deposit £4,000 into your Lifetime ISA each tax year, you can earn up to £1,000 as a free annual bonus.

There’s loads more content available in-app. From expert commentary to step-by-step guides, we’ve got it all.

Unlock 4.50% AER (variable) on regular access savings

Your Cash ISA has unlocked an exclusive reward rate on our Simple Saver! Build your savings and enjoy next-day withdrawals, with a maximum of one per calendar month.

You can earn a Simple Saver reward rate of 1% (variable) on top of the underlying rate of 3.50% AER (variable), by keeping your balance above £0 in your Cash ISA or another qualifying Moneybox account*.

Start saving in minutes with an instant bank transfer of £100 or more.

 

*You will earn this reward rate if you either: have a balance above £0 in a qualifying account, which includes: Cash ISA, Stocks & Shares ISA, Lifetime ISA**, Junior ISA, Personal Pension, or; have a Reward Savings Account that hasn’t been cancelled. **If your balance in your Lifetime ISA drops to £0 then you are eligible to keep the reward rate for 12 months or until 13/02/2025, whichever date is later. % AER (annual equivalent rate) is the rate you will earn after a year, including compounding. The interest rate may change. Interest is earned daily and paid monthly. Please note, instant bank transfers are not supported by all banks. Bank transfers typically take minutes to arrive, but can take up to 24 hours.

 

All investing should be long term (min. 5 years). The value of your investments can go up and down, and you may get back less than you invest.

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.