Moneybox Cash LISA = 3.5% - ? New customers only

Rheumatoid

Website says rate now 3.5% but my app still saying 3%. No indication the 3.5% is for new customers only.
Anyone know if current customers should get the uplift?

alternate

It is the 12 month bonus that has gone up from 0.25 to 0.75 - so they could well be doing that so that only new business gets that rate.  Especially as you can't transfer back to them if you have held a LISA with them before.

My situation is a bit more of a wrinkle.  Bad luck and bad timing means I have an ISA transfer in progress to moneybox and am likely to miss the increased rate, even though the LISA hasn't been funded until the transfer completes.  I have messaged them but am not hopeful.

Rheumatoid

Yes. That seems to be the case. A bit annoying as both kids transferred large sums a couple of weeks ago. Still much better than Skipton tho

alternate

I talked to someone over there and they reckon it is because they don't have their own holdings.  For example, my account is actually underwritten by santander - even though moneybox deal with all the admin.  The new account offering with the higher bonus could well be with another bank.  That was the excuse they gave anyway and it sounds plausible.

As you say, even at the old bonus rate they were a lot better than the competition, so what can you do.

Rheumatoid

Similar answer:

"Hi XXX, thank you for reaching out! We work with a panel of banks to be able to offer you the interest you earn on your Cash Lifetime ISA. At different times, banks (and therefore Moneybox) are able to offer different rates, meaning your rate may differ to someone else's depending on when you opened your Lifetime ISA. This is true for both our underlying rate which is variable, and the bonus introductory rate which is fixed for the first 12 months of your account being open. At the moment the variable base rate of interest for our Cash LISAs is 2.75% AER. If your bonus interest rate is 0.25%, this is fixed I'm afraid from when you open the account."

CooperSF

Mine is currently 3.25%

snowqueen555

I'm only on 1.5%, it depends on when you opened an account. I will be moving soon, the one benefit from Moneybox is the interest is paid monthly so you sorta see it accumulate.

saajan_12

Anyone successfully negotiated a higher bonus?

I have a Cash LISA 'powered by' OakNorth Bank paying 1.3% for a couple of years. Moneybox emailed to say that would be changing to a new Moneybox Cash LISA at 2.75% interest. Not sure if it would be classed as a new Moneybox LISA, so eligible for the 0.75% bonus.