Query re transfers into Moneybox Lisa

Fufu3333

I have a Skipton LISA and wanted to transfer to Moneybox LISA as they seem to be top LISA provider at the moment.  I haven't used them before.

I am hoping to buy my first property later this year.

Once I have transferred in (and how long does this take?), if I deposit another £4000 by late February, would I still benefit from the government's £1,000 bonus at the end of this tax year and would I get any other bonus payment from Moneybox?  

Thanks for your help.

razord

Fufu3333 said:

I have a Skipton LISA and wanted to transfer to Moneybox LISA as they seem to be top LISA provider at the moment.  I haven't used them before.

I am hoping to buy my first property later this year.

Once I have transferred in (and how long does this take?), if I deposit another £4000 by late February, would I still benefit from the government's £1,000 bonus at the end of this tax year and would I get any other bonus payment from Moneybox?  

Thanks for your help.

I transferred  in a pathetically small amount from Newcastle that I opened a few years ago and it took about a week.

So long as you've not deposited anything into Skipton this tax year, you can then pay in £4000 to Moneybox

eskbanker

https://www.gov.uk/guidance/transfer-lifetime-isas-between-managers#transfer-lifetime-isas-between-lifetime-isa-managers states that LISA transfers must be completed within 30 days, and that bonuses can be transferred from old to new even if not claimed by the time of the transfer.  Bonuses are only applicable to each contribution, so once you've received the bonus for your 2022/23 deposit, there won't be any more unless you pay in again once the new tax year starts.

Fufu3333

Thank you.  Will open one with Moneybox shortly.  I am assuming I won't be eligible for the 0.75% bonus if I buy next year as I wouldn't have the account open 12 months?

eskbanker

Fufu3333 said:

Thank you.  Will open one with Moneybox shortly.  I am assuming I won't be eligible for the 0.75% bonus if I buy next year as I wouldn't have the account open 12 months?

The bonus is 25% of any contributions paid into the LISA, not sure where your reference to 0.75% is from?

Separately, there is a withdrawal penalty applicable if accessing the money within 12 months of opening your first LISA, i.e. transferring doesn't reset that clock.

Fufu3333

Oh, I was referring to the 3.5% interest rate with bonus on opening the account with Moneybox  "(includes a 0.75% 12-month fixed bonus)".

Hopefully withdrawal penalty won't apply because I have had Skipton open for about 4 years.

eskbanker

Fufu3333 said:

Oh, I was referring to the 3.5% interest rate with bonus on opening the account with Moneybox  "(includes a 0.75% 12-month fixed bonus)".

Ah right, understood now - this would typically mean that the interest rate is boosted by an extra 0.75% for (up to) a 12 month period, not that you need to have the money in there for that length of time, although obviously if you only have the money in there for six months the interest would be pro rata, i.e. 1.75%.

Fufu3333

Ok, thank you very much for confirming.

Fufu3333

eskbanker said:

Fufu3333 said:

Thank you.  Will open one with Moneybox shortly.  I am assuming I won't be eligible for the 0.75% bonus if I buy next year as I wouldn't have the account open 12 months?

The bonus is 25% of any contributions paid into the LISA, not sure where your reference to 0.75% is from?

Separately, there is a withdrawal penalty applicable if accessing the money within 12 months of opening your first LISA, i.e. transferring doesn't reset that clock.

With apologies, just had a thought and another question from what you say above - this means that if I buy next year, even though I wouldn't have been with Moneybox for a year, the funds in Moneybox can still be used as part-deposit WITHOUT incurring a penalty?  Thanks again.

eskbanker

Fufu3333 said:

eskbanker said:

Fufu3333 said:

Thank you.  Will open one with Moneybox shortly.  I am assuming I won't be eligible for the 0.75% bonus if I buy next year as I wouldn't have the account open 12 months?

The bonus is 25% of any contributions paid into the LISA, not sure where your reference to 0.75% is from?

Separately, there is a withdrawal penalty applicable if accessing the money within 12 months of opening your first LISA, i.e. transferring doesn't reset that clock.

With apologies, just had a thought and another question from what you say above - this means that if I buy next year, even though I wouldn't have been with Moneybox for a year, the funds in Moneybox can still be used as part-deposit WITHOUT incurring a penalty?  Thanks again.

Yes, the 12-month clock starts ticking when you first open a LISA, and doesn't reset when transferring to one from another provider, so no penalty, as long as the purchase of your first property complies with all the other conditions (value cap, primary residence, etc).