Moneybox cutting rates - what are the options?

jbrassy

Just received an email from Moneybox saying that the interest rate on their 95 day notice account is being cut from 1.25% to 0.8% from the 14th September.

I currently have most my cash savings in Moneybox, but I also have a Marcus account which still pays 1.15% until the bonus expires in September.

The question is, should I withdraw my cash from Moneybox in the expectation that there will be something better in September? 

I appreciate any thoughts people have. 

lhsecons

Do you still have to give the 95 days notice, or are they waiving it because of the interest rate cut?
If the latter I would just hold fire, if the former I would be tempted to give notice. Hopefully there will be something better than 0.8% in September(Maybe NS&I?) and if not you could just open another money box account.

ischris85

A withdrawal still requires 95 day notice as per the terms on the account.

MinuteNoodles

jbrassy said:

The question is, should I withdraw my cash from Moneybox in the expectation that there will be something better in September?

There won't be anything better in September. It is highly unlikely the BoE will do anything but reduce interest rates. They most certainly won't be putting them up from 0.1% any time soon due to the impact to the economy from the lockdown.

jbrassy

lhsecons said:

Do you still have to give the 95 days notice, or are they waiving it because of the interest rate cut?
If the latter I would just hold fire, if the former I would be tempted to give notice. Hopefully there will be something better than 0.8% in September(Maybe NS&I?) and if not you could just open another money box account.

You still have to give 95 days notice. However, they still pay you interest during the 95 days during which your money is being withdrawn. 

I think I'm going to withdraw as you suggest. If there is something better in September, I'll stick it in there. Otherwise, I can always put it back in Moneybox. 

P-Gandhi

I've given notice to withdraw yesterday and have confirmed you can continue to deposit money into the account and earn interest whilst you serve the 95 day notice period.

ischris85

Received the below email from Moneybox today:

We're writing to let you know that we are temporarily suspending deposits into the 95 Day Notice Savings Account, powered by Investec. This means that until further notice, you will not be able to add money to this account after the collection at midday this Wednesday - 17th June.

Over the last few months, we have seen large numbers of customers sign up for the 95 Day Notice Savings account. Unfortunately we have limited capacity with Investec and have therefore taken the decision to temporarily suspend deposits for existing customers and close the account to new customers.

We are sorry for any inconvenience this may cause. We are working closely with the team at Investec and will be sure to let you know as soon as deposits are available again. 

Please note all other aspects of the 95 Day Notice Savings account will continue to operate as normal and you will continue to earn interest on your existing savings. If you would like to make a withdrawal, you can do this at any time via the Moneybox app - the normal 95 day notice period will apply. 

We are still accepting deposits into all of our other accounts. For more information on the range of accounts we offer, check out the Moneybox website. 

As always, if you have any questions, please get in touch with our support team via the in-app chat or at support@moneyboxapp.com.

jbrassy

Yes - I received the same email. I've already hit the 'withdraw' button and will be getting my money + interest back in September at which point I'll decide where to stick it. 

It's a bit sad because I was hoping to continue using it for the top-ups which I find is a stealthy way to increase my savings on top of the regular amount I save. I think all savings account providers are being flooded with cash from people who have not been made redundant or furloughed and suddenly have a lot more leftover in their bank account.

Luckily I also set up a Vanguard stocks and shares ISA at the beginning of the year which has done surprisingly well to date.

hoxtonbabe

I received this too, I only joined a couple months ago and was only saving a little bit at a time but found it a good way For me to save as I’m usually quite bad at saving so I’m disappointed I can no longer add after Wednesday. I may as we’ll leave it where it is, due to the small amount. 

ischris85

jbrassy said:

Yes - I received the same email. I've already hit the 'withdraw' button and will be getting my money + interest back in September at which point I'll decide where to stick it. 

It's a bit sad because I was hoping to continue using it for the top-ups which I find is a stealthy way to increase my savings on top of the regular amount I save. I think all savings account providers are being flooded with cash from people who have not been made redundant or furloughed and suddenly have a lot more leftover in their bank account.

Luckily I also set up a Vanguard stocks and shares ISA at the beginning of the year which has done surprisingly well to date.

I hit the withdraw to get my money back in August. It was good while it lasted.

Retired_at_55

I also received the same email today.  It says interest  will continue to be paid although no savings can be added.   I have been adding a small amount weekly by Direct Debit.  I am happy to leave the modest amount of savings I have there, hoping that the Direct Debit will be reinstated later, so I have not given the 95 days notice.

Although I don't have a lot of savings there - is it safe enough to leave them there or is there any reason to have concerns about their safety?  If there is concern I would be better to give notice to withdraw now.  Thanks.

Retired at 55