Moneybox Cash LISA - Interest rate drop 8th of June 2020

Breadcake

Email from Moneybox regarding the Cash Lifetime ISA:

We're writing to let you know that the interest rate on your Lifetime ISA (powered by OakNorth Bank) is changing from 1.25% AER variable* to 1.1% AER variable on Monday 8th June.
OakNorth Bank is making this change as a result of the Bank of England's decision to cut the base interest rate from 0.75% to 0.1% in response to the impact of coronavirus on the economy. This change has affected interest rates across the market and therefore impacted the rate they're able to offer you.
As a reminder, this interest rate applies to your contributions and any monthly government bonuses. You can save up to £4,000 per tax year into your Lifetime ISA and receive a government bonus of up to £1,000.

Curls2208

Well here is something interesting.

Apparently you can swap from Oaknorth bank to investsec. Investsec currently has a rate of 1.25% still. Anyone with them through moneybox already and know if they will change to lower it too?

Curls2208

here it is...

funkymonkey

I have just sent the Moneybox team a message to check if investec are reducing their rate too. If not I will switch! Thanks @Curls2208 for the tip!

Curls2208

Thanks, let me know how you get on. Mine wouldn't let me for some reason. But if you manage and it's worth it, i'll hound them on messenger

funkymonkey

well my reply was: 

'Thank you for getting in touch! I'm afraid the interest rates of both Lifetime ISAs are variable and, as with all variable interest rates, your rate could change in the future. 

You will have seen a number of providers changing their interest rates. Unfortunately we don't know right now whether our rates will change again in future. 

Apologies to not be able to give more guidance here!'

So no clearer really. Does anyone have their moneybox LISA powered by investec and if so have you received the rate drop email?

grumiofoundation

https://forums.moneysavingexpert.com/discussion/6151725/investec-join-in-the-falling-savings-rates#latest

Ed-1

grumiofoundation said:

https://forums.moneysavingexpert.com/discussion/6151725/investec-join-in-the-falling-savings-rates#latest

So what's happening to the rate on the Moneybox LISA powered by Investec?

Tugboat

I asked Moneybox today about the Investec LISA, you can transfer from Oak North but not back Oak North, All new cash LISAs will be with Investec,i seems Moneybox are moving away from Oak North permanently. 

I asked if the Investec had informed customers that the interest rate was to reduce  from 1.25%, they would not answer that. 

Tugboat

An update, I have transferred from Oak North to Investec, Moneybox have informed me that Investec have not notified of a reduction from 1.25%.  Clearly this could and may likely change.

Fadacious

Tugboat said:

An update, I have transferred from Oak North to Investec, Moneybox have informed me that Investec have not notified of a reduction from 1.25%.  Clearly this could and may likely change.

Thanks, I've been looking to transfer over to them. Keep us posted if the rate for them does change though!