Moneybox Cash LISA - Interest drop

Tugboat

Like the Moneybox Cash LISA with Oak North the Investec rate has dropped, just been notified of a drop from 1.25% to 1%. 

Ed-1

Tugboat said:

Like the Moneybox Cash LISA with Oak North the Investec rate has dropped, just been notified of a drop from 1.25% to 1%. 

Glad I stuck with the OakNorth at 1.1% now. Was going to switch to Investec tomorrow so thanks for that!

someone

I switched from OakNorth to Investec to stay at 1.25%. With the recent email about the drop to 1% I'm going to give it a few days to see if Moneybox replace the provider.

Outside Moneybox there are at least two accounts paying more than either Moneybox LISA providers

• 1.25% @ Nottingham BS | Rate was boosted to 1.25% (from 1%) back in October 2019 and held at that point since.
  
• 1.15% @ Paragon Bank | Checking online the current 1.15% LISA rate has been offered since Paragon launched their LISA offering in November 2019. Paragon dropped their Cash ISA rate for existing customers from 1.2% to 1% on the 1st June (new cash-ISA accounts are 0.5%).
  

Paragon survived a recent cull (however is not idea for me as pushes me over the £85k FSCS deposit protection). Not sure about chance of further cut at Nottingham (knew about Paragon as existing Cash ISA customer).

Edit: This story from April says Nottingham froze savings rates for 3 months (so moratorium until July).

Ed-1

Ed-1 said:

Tugboat said:

Like the Moneybox Cash LISA with Oak North the Investec rate has dropped, just been notified of a drop from 1.25% to 1%. 

Glad I stuck with the OakNorth at 1.1% now. Was going to switch to Investec tomorrow so thanks for that!

Spoke too soon!

epm-84

someone said:

Outside Moneybox there are at least two accounts paying more than either Moneybox LISA providers

• 1.25% @ Nottingham BS | Rate was boosted to 1.25% (from 1%) back in October 2019 and held at that point since.

Edit: This story from April says Nottingham froze savings rates for 3 months (so moratorium until July).

When Skipton launched their Lifetime Cash ISA they were the only provider, so became the market leader due to no competition.

Nottingham always offered slightly more but not really enough more to get lots of transfers in.  However, keeping the rate at 1.25% for now is enough difference for them to get a significant number of transfers from Skipton and if they get Moneybox transfers as well I think they'll be very happy.

Ed-1

epm-84 said:

someone said:

Outside Moneybox there are at least two accounts paying more than either Moneybox LISA providers

• 1.25% @ Nottingham BS | Rate was boosted to 1.25% (from 1%) back in October 2019 and held at that point since.

Edit: This story from April says Nottingham froze savings rates for 3 months (so moratorium until July).

When Skipton launched their Lifetime Cash ISA they were the only provider, so became the market leader due to no competition.

Nottingham always offered slightly more but not really enough more to get lots of transfers in.  However, keeping the rate at 1.25% for now is enough difference for them to get a significant number of transfers from Skipton and if they get Moneybox transfers as well I think they'll be very happy.

And then they'll cut the rate.. 

someone

On Friday I got an email from Paragon saying the Cash-ISA was dropping from 1% to 0.5% (another headache to sort). Be interested to know if there was any coms to LISA holders the same day about their rate. Might give them a call at some point.

Really can't see Nottingham holding at 1.25% beyond their 3 month moratorium on rates if no other provider comes in at that rate.

epm-84

someone said:

Really can't see Nottingham holding at 1.25% beyond their 3 month moratorium on rates if no other provider comes in at that rate. 

One thing to note is some people still have Help2Buy ISAs.  If the Lifetime ISA interest rates are significantly lower that will likely mean the people who open Lifetime ISAs with £1 and then carry on saving in their existing Help2Buy ISA will likely increase.

Although, saying that I think Nottingham BS will be looking at whether or not they should lower the 1.25% rate.

Fadacious

So there's no point in switching providers at this point then I'm guessing?

Tugboat

I'm not eligible to transfer to Nottingham BS due to age restrictions but considering Paragon, just waiting to see if they drop their interest rate.

Fadacious

Looks like there's been another rate drop (at least with OakNorth) to 0.75% now...