1. Home
  2. >
  3. News
  4. >
  5. Moneybox launches market-leading ISA rate – and you could get a £1,000 bonus

Moneybox launches market-leading ISA rate – and you could get a £1,000 bonus

Moneybox Launches Market Leading ISA Rate

Popular investment app Moneybox has launched a market-leading rate on their Cash Lifetime ISA (LISA), meaning savers can now benefit from a great rate as well as a potential £1,000 boost to their savings.

Savers between the ages of 18 and 39 can contribute up to £4,000 into a LISA each tax year, receiving a 25% government bonus on top of what they put in – a maximum of £1,000 each year. Returns on a LISA are free of both Income Tax and Capital Gains Tax, making them a tax-efficient way to save.

This money can then be used as a deposit on a first home or to make an early start on saving for retirement.

On top of this 25% government bonus, Moneybox’s Cash LISA currently offers a market-leading variable rate of 0.85%, including a 0.25% variable base rate and a fixed one-year bonus interest rate of 0.6%, as of February 2022. There are no additional charges or fees to pay.

Moneybox say you can download the app and get started with just £1. And, they also support digital transfers in from most providers, meaning you could switch your existing ISA to take advantage of this market-leading rate.

Half a million savers now using LISAs

The attractive benefits that LISAs offer have seen many first-time buyers turn to them to save for a deposit.

According to Hargreaves Lansdown, there were more than half a million LISAs paid into in 2019/20.

Meanwhile, MoneySavingExpert’s Martin Lewis has included the product on his top savings tips for 2022.

Lewis has urged anyone under the age of 39 to open a LISA, such as the Moneybox Cash ISA, and to make a contribution before they reach the age of 40.

By doing this, a saver can continue to contribute to the ISA until their 50th birthday, and benefit from the government bonus and tax-efficient returns. If you wait until after the age of 40 to open a LISA, it’s too late.

Bear in mind that anything saved into a LISA must be withdrawn to pay for a deposit on a house or left until savers turn 60. Otherwise, there will be a 25% withdrawal penalty on any money taken out.

More News

From our blog

Newsletter Sign-up

Get access to free financial guides and a monthly curation of the best personal finance content in the UK.

We will not spam you.

*Required

By entering your email address you confirm you are happy with our privacy policy.

Menu