Skipton LISA interest rate reduction to 0.35%

epm-84

Skipton have written to LISA customers saying the interest rate will be reduced from 1% to 0.35% from 23 April.  They have no information about the interest rate reduction on their website on the interest rate reduction page: https://skipton.co.uk/base-rate-change which still says "We’re currently looking at how the base rate change will affect the rest of our savings rates, and we’ll let you know about any changes as soon as we can"

coffee_prince

Yes I got my letter today. I am sure the otherplaces like moneybox will do the same and drop their rates. I am waiting until July when my LISA interest comes in, and see what else is out there. It isn't good for savers that's for sure.

epm-84

Moneybox are not currently accepting transfers in.

One question I have about transfers is if you've had a Lifetime ISA open for over 12 months with provider A and then transfer it to provider B, does that mean you can withdraw the funds for a house purchase at any time or would it mean it's a new Lifetime ISA and you have to wait 12 months before you can make a withdrawal?

eskbanker

epm-84 said:

One question I have about transfers is if you've had a Lifetime ISA open for over 12 months with provider A and then transfer it to provider B, does that mean you can withdraw the funds for a house purchase at any time or would it mean it's a new Lifetime ISA and you have to wait 12 months before you can make a withdrawal?

Transferring between LISA providers preserves the original opening date, so there's the 12 month clock doesn't restart in such circumstances.

adamh87

Just got my letter - really wish it'd arrived before I put this year's allowance in

Will probably move it to Nottingham BS or Moneybox once I can, but yes best wait for the dust to settle as other providers update their rates. 

Yet more bad news for FTBs

grumiofoundation

adamh87 said:

Yet more bad news for FTBs

Interest cut will cost £32.5 per year in interest for every £5000 in the LISA. 

Although not ideal of course I don't think that this is a particularly huge issue in the grand scheme of someone buying their first house.

Considering of course that this 1-0.35% drop pales into insignificance compared to the free £1000 you are getting each year from the government towards your first property due to the LISA scheme.