Moneybox LISA

1Foz

Ok, just in case I'm going mad, is there any point switching to this if you hold either a Skipton or Newcastle bs cash Lisa ? The 1.4 rate looks attractive but as far as I see, if I move my 20k into it I'll be paying £12 just for holding the account and then a 0.45% platform fee (something I only just stumbled across at the t&C's when read). So, my 20k would incur £102 in fees as far as I see ... Meaning the extra interest is swallowed up plus £22 more ! Is this 1.4 rate just trying to fool people ? And us it right that they can hide this fairly discreet platform fee thats rather significant yet you wouldn't know if you just tick checked the "read t&c" box. Guess I should stick with Skipton then !

Alexland

Moneybox Cash LISA has no fees you are confusing it with their S&S products.

https://www.moneyboxapp.com/cash-lifetime-isa/

Are there any fees for this account?
There are no fees for this account.

1Foz

I guess the FT is incorrect ?

Customers saving the maximum £5,000 into a Moneybox Lisa in the first year would pay £45.96 to Moneybox, or 0.92 per cent of the amount invested. The app charges a flat fee of £1 per month (the first three months are free) and a platform fee of 0.45 per cent on the value on the assets held on the account. Customers also pay fund provider fees, which range between 0.22 per cent and 0.24 per cent.

https://www.ft.com/content/300af70e-de70-11e7-8f9f-de1c2175f5ce

Alexland

That article is from the FT in December 2017 when they launched their S&S LISA. There are no fees on their recently launched Cash LISA. They are different products.

1Foz

Ok great thanks, but would Skipton pay out interest earned before my anniversary date (4th Jan) if I transfer ? Otherwise I guess I should wait til then if it means losing what would be earnt til now.

toothdoctor

Yes they would

Alexland

It is normal for an ISA manager to add the interest earned so far during the year onto the closing balance that gets transferred.

Given your LISA balance I presume this happened when you transfered in your previous HTB ISA?

Alex

1Foz

I think it did, but I only had 4 or 5k at the point of transfer, and the old rate I had was pretty bad tbh as I wasn't particularly market savvy until last few years ! I opened a nationwide H2B isa after just for the 2.5 rate (which I basically only use for any spare cash left after my first direct and nationwide regular savers go out). Looks like I'll have to open an m+s account end of the year tho cos nationwide are scrapping it's saver I see.

Anyway thank you all for the help, I've now signed up to moneybox and sending transfer form today. Hopefully that will make my 20k £80 better off then by next year :j

Alexland

Remember you need to switch into M&S to get their 5% regular saver. If you don't want to switch then consider the HSBC 5% regular saver if you qualify for an Advance account.

Nicosy

Moneybox is great, but 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 re-balance 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!

1Foz

Alexland wrote: »

Remember you need to switch into M&S to get their 5% regular saver. If you don't want to switch then consider the HSBC 5% regular saver if you qualify for an Advance account.

I already tried and failed to get the HSBC Premier sadly, they would only offer me the normal account for a 3% linked saver account, which wasn't worth it when I can get a 3.5% rate with Saffron.

Yeah I will be switching my Nationwide flex to M+S when that comes around in December.

I was hoping to close my First Direct account, but I think the one remaining pre-condition to fulfill is having a current account with them to maintain its 5% saver. Can't complain tho, at least I don't have to transfer money to it any more to avoid the old banking charge.

Nicosy wrote: »

Moneybox is great, but 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 re-balance 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!

I really like the Moneybox app. Was impressed also with Monzo too, though i'm switching that out for Barclays just for the double rewards bonus. Yeah I might switch back to Skipton in the future, there's a branch nearby and I will prefer to take a mortgage out where i'm dealing face to face in all honesty.