Moneybox launches market-leading cash lifetime ISA - MSE News

20SmthngSver

katie4 wrote: »

I have LISA with Skipton for my pension, does anyone know if i can transfer this over or is it for house buyers only atm? thanks

The Lifetime ISA is for a pension at 60 or first time buyer, regardless of the provider. It's up to you what you use it for.

eskbanker

katie4 wrote: »

I have LISA with Skipton for my pension, does anyone know if i can transfer this over or is it for house buyers only atm? thanks

If you're using a LISA with retirement in mind, you'd be better advised to use a S&S one rather than a cash one.

Even though the Moneybox account offers an interest rate that's better than the rest, as pointed out above it's still below inflation, so if the savings/inflation ratio stays this way round for the long term then the real-terms value of your money will steadily decline, maybe even by more than the 25% government bonus, given that at least some of the money will be tied up in the account for over twenty years.

So, IMHO it would be worth looking beyond Skipton and Moneybox and considering the S&S options at https://www.moneysavingexpert.com/savings/lifetime-isas/#bestbuysstocks

Wings_of_Ambition

This may have been covered elsewhere, but saw the question asked on facebook about whether transferring in to a new LISA 'resets' the 12-month clock. The response from MoneyBox was:

"The LISA clock does not 'reset' when you transfer, it still counts from when you opened your very first LISA."

[Deleted User]

I did wonder that, as it was my biggest concern before transferring - wouldn't want trying to nab a few more quid to cause all kind of issues at exchange!

Have saved the following page as a PDF, just incase!

https://www.gov.uk/guidance/lifetime-isas-for-isa-managers

12 month rule
An investor can only make a charge-free withdrawal for a first time residential purchase from their account 12 months after the date of their first payment into their LISA.

The 12 month rule applies to each separate LISA that an investor may have opened.

If an account was transferred to the current ISA manager then 12 month rule applies to the date that the account was originally opened before it was transferred.

Sent my form off today, will see how quickly it's processed (30 wd max, but hopefully more efficient!)

Nicosy

Somerset_La_La_La wrote: »

I do wonder how simple it will be to redeem - I have reservations about an app based support vs. a traditional building society (I'm with Skipton at the moment) where you/conveyancer can get on the phone to complain about any hold ups!

I have signed up to transfer though, an extra £50+ per year in interest isn't insignificant. Plus hopefully if providers see an exodus, they'll actually think about paying a decent rate.

Can you transfer twice in one tax year? If another new entrant came along/somebody else does actually up the rate?

The Moneybox app for their LISA is very user-friendly and shows current earnings, today's interest, pending bonuses, in progress deposits and withdrawals, completed transactions, interest due, etc etc.

But from what I've read, actually getting access to the deposit when it comes to buying a house does seem to be a relatively complicated thing to. Skipton has experience of doing all of that and do seem to solve any problems associated with it fairly efficiently. Customer service doesn't really count for anything when the money is just sitting there but I do think it will count for something when the time comes for a house purchase.

Skipton give £250 cashback on their mortgage fees if you have their LISA. So, if you happen to be going for one of their mortgages, that might rebalance things.

I suppose you could always try to have your cake and eat it by transferring to Moneybox and transfer back to Skipton when it comes to buying property! :bdaycake:

[Deleted User]

Nicosy wrote: »

I suppose you could always try to have your cake and eat it by transferring to Moneybox and transfer back to Skipton when it comes to buying property! :bdaycake:

Ha I did consider that earlier!

I'm not eligible for a Skipton mortgage at the moment, but when I am I'm very tempted to move it back as they're one of the few lenders that would lend to me!