Moneybox LISA

PinkTourmaline

Good evening!

Im hoping that someone can give me a bit of advice please?

My 21 year old son opened a cash LISA on Saturday. This was to benefit from the help to buy scheme. Today, he had an email from Moneybox explains that they were cutting the interest rate from 1.25% down to 1% However, he will still get the 25% government bonus. 

My question is, should I be worried about keep putting the deposit savings in there? I’ve read that some people are moving their money out but I’m not sure whether that’s different type of accounts or not. 

Sorry if this seems a stupid question but I’ve never dealt with LISA’s before this weekend and then that email arrived.

Many thanks

grumiofoundation

Money in the lifetime ISA is FSCS protected so in the event Moneybox/Investec went under would be compensated up to 85,000.

https://www.moneyboxapp.com/faqs/is-my-cash-lifetime-isa-protected-by-the-financial-services-compensation-scheme/

My 21 year old son opened a cash LISA on Saturday. This was to benefit from the help to buy scheme. 

By help to buy scheme do you mean the 25% bonus on lifetime ISA deposits or the help to buy equity loan?

London7766551

Moneybox is based on investments I believe, I would not say the stock market is very stable at the moment but it is designed for long term saving. If you want a safer option use a cash LISA. Skipton BS offers one.
Remember that he will not be able to access any money you put in unless it is for a house. (Up to 4K a year - you need to put the 4K in to get the 1K bonus per year). If you take the money out before buying a house, there is a 25% penalty.

grumiofoundation

London7766551 said:

Moneybox is based on investments I believe, I would not say the stock market is very stable at the moment but it is designed for long term saving. If you want a safer option use a cash LISA. Skipton BS offers one.
Remember that he will not be able to access any money you put in unless it is for a house. (Up to 4K a year - you need to put the 4K in to get the 1K bonus per year). If you take the money out before buying a house, there is a 25% penalty.

Moneybox offers a Cash LISA (stated in OP son had opened a cash LISA) 

jazzyja

I have a moneybox Lisa. Not had a problem. The interest has changed due to the current climate. Its inevitable really. I didnt take any notice of the interest rate when I opened as I predicted it would drop. Im more interested in the 25% top up as I need it for a deposit 

PinkTourmaline

Thank you.
It’s the 25% bonus each year on a deposit for a first time buyer mortgage.

The thinking behind it was to open it now which gives plenty of time to save a decent deposit for the next 7/8 years.

I hope I’ve done the right thing now

jazzyja

PinkTourmaline said:

Thank you.
It’s the 25% bonus each year on a deposit for a first time buyer mortgage.

The thinking behind it was to open it now which gives plenty of time to save a decent deposit for the next 7/8 years.

I hope I’ve done the right thing now

What's making you think you haven't done the right thing? 

PinkTourmaline

jazzyja said:

I have a moneybox Lisa. Not had a problem. The interest has changed due to the current climate. Its inevitable really. I didnt take any notice of the interest rate when I opened as I predicted it would drop. Im more interested in the 25% top up as I need it for a deposit 

Thank you. 

The 25% bonus is why he opened it. I just panicked tonight when I read that people were choosing to move their money out. 

grumiofoundation

PinkTourmaline said:

jazzyja said:

I have a moneybox Lisa. Not had a problem. The interest has changed due to the current climate. Its inevitable really. I didnt take any notice of the interest rate when I opened as I predicted it would drop. Im more interested in the 25% top up as I need it for a deposit 

Thank you. 

The 25% bonus is why he opened it. I just panicked tonight when I read that people were choosing to move their money out. 

You might be thinking about their 95-day notice account which has recently had a rate cut and has now stopped accepting deposits (see thread below). https://forums.moneysavingexpert.com/discussion/6151784/moneybox-cutting-rates-what-are-the-options/p1

The Moneybox interest rate is no longer the best rate (1.25% with Newcastle (edit: Nottingham see post below) I think current best) maybe this is another reason might be moving to a better interest rate? 

Ed-1

grumiofoundation said:

PinkTourmaline said:

jazzyja said:

I have a moneybox Lisa. Not had a problem. The interest has changed due to the current climate. Its inevitable really. I didnt take any notice of the interest rate when I opened as I predicted it would drop. Im more interested in the 25% top up as I need it for a deposit 

Thank you. 

The 25% bonus is why he opened it. I just panicked tonight when I read that people were choosing to move their money out. 

You might be thinking about their 95-day notice account which has recently had a rate cut and has now stopped accepting deposits (see thread below). https://forums.moneysavingexpert.com/discussion/6151784/moneybox-cutting-rates-what-are-the-options/p1

The Moneybox interest rate is no longer the best rate (1.25% with Newcastle I think current best) maybe this is another reason might be moving to a better interest rate? 

Try Nottingham (although that is only guaranteed until end of July after which that might change too).

grumiofoundation

Ed-1 said:

grumiofoundation said:

PinkTourmaline said:

jazzyja said:

I have a moneybox Lisa. Not had a problem. The interest has changed due to the current climate. Its inevitable really. I didnt take any notice of the interest rate when I opened as I predicted it would drop. Im more interested in the 25% top up as I need it for a deposit 

Thank you. 

The 25% bonus is why he opened it. I just panicked tonight when I read that people were choosing to move their money out. 

You might be thinking about their 95-day notice account which has recently had a rate cut and has now stopped accepting deposits (see thread below). https://forums.moneysavingexpert.com/discussion/6151784/moneybox-cutting-rates-what-are-the-options/p1

The Moneybox interest rate is no longer the best rate (1.25% with Newcastle I think current best) maybe this is another reason might be moving to a better interest rate? 

Try Nottingham (although that is only guaranteed until end of July after which that might change too).

Darn - wrong building society beginning with an N