Moneybox FSCS Rules

10660135

My sons have both opened a Moneybox LISA as it was quoted on here as having the highest interest rate @ 3.5% on 11/4/23. I am concerned after reading the email from MSE this week advising to check the FRN number on the FSCS website. One FRN 772435 comes up as 'no results found' and the other for Digital Moneybox Ltd 792703 states that it is not protected. The app my sons have used to open this account states both these FRN numbers and also states that it is protected under FSCS up to the regulated £85000. I don't know whether to advise my sons to take their money out and would like a definitive answer whether they are protected or not and if they aren't why are they advertising that they are?     

eskbanker

https://www.moneyboxapp.com/fscs-protection/

For Savings products, such as the Cash Lifetime ISA (LISA) or notice accounts, your funds are protected by the bank holding your money. Moneybox does not hold your money itself, it uses third party banks. The banks we partner with are covered by the FSCS. You are covered up to £85,000 per person per bank for your total eligible deposits with a particular bank, whether that is deposited through Moneybox, other providers, or directly with the bank. 

[...]

Cash Lifetime ISAs

Moneybox customers may have one of two Cash Lifetime ISAs:

1. Cash Lifetime ISA powered by Investec

This money is held with Investec Bank plc.

2. Moneybox Cash Lifetime ISA

Moneybox uses a broad range of banks for its Cash Lifetime ISA. The proportion of money held with each bank can vary over time however, we will never hold more than 50% of the funds with any bank at any given moment. As the banks we use change over time, if you would like more information please get in touch.

masonic

Very odd result on that 'other' FRN: https://register.fca.org.uk/s/firm?id=001b000003gD2S1AAK
Other than this thread, I get no results linking it to Moneybox.

FB13

eskbanker said:

https://www.moneyboxapp.com/fscs-protection/

For Savings products, such as the Cash Lifetime ISA (LISA) or notice accounts, your funds are protected by the bank holding your money. Moneybox does not hold your money itself, it uses third party banks. The banks we partner with are covered by the FSCS. You are covered up to £85,000 per person per bank for your total eligible deposits with a particular bank, whether that is deposited through Moneybox, other providers, or directly with the bank. 

[...]

Cash Lifetime ISAs

Moneybox customers may have one of two Cash Lifetime ISAs:

1. Cash Lifetime ISA powered by Investec

This money is held with Investec Bank plc.

2. Moneybox Cash Lifetime ISA

Moneybox uses a broad range of banks for its Cash Lifetime ISA. The proportion of money held with each bank can vary over time however, we will never hold more than 50% of the funds with any bank at any given moment. As the banks we use change over time, if you would like more information please get in touch.

Moneybox used to list the banks on that page for the Moneybox Cash Lisa. But when the collapse of Silicon Valley Bank first hit the news, they scrubbed all mention of Silicon Valley Bank UK from their website and removed the other banks as well. 

eskbanker

FB13 said:
Moneybox used to list the banks on that page for the Moneybox Cash Lisa. But when the collapse of Silicon Valley Bank first hit the news, they scrubbed all mention of Silicon Valley Bank UK from their website and removed the other banks as well. 

Indeed, although it was quite a long list, so SVB weren't hugely prominent on it:

3. Moneybox Cash Lifetime ISA

This money is held as client money with the following banks:

• Clydesdale Bank PLC
• Emirates NBD Bank (P.J.S.C)
• Hampshire Trust Bank PLC
• HSBC Bank PLC
• Investec Bank PLC
• Arbuthnot Latham & Co. Limited
• First Abu Dhabi Bank P.J.S.C.
• Aldermore Bank PLC
• Santander Financial Services PLC
• Silicon Valley Bank UK
• Brown Shipley & Co Limited

The proportion of money held with each bank can vary over time.

https://web.archive.org/web/20221003011943/https://www.moneyboxapp.com/fscs-protection/

In the context of OP's concern, it's perhaps worth noting that HSBC acquired the business of SVB UK without FSCS having to come into play at all....

skybluearmyontour

Just had this concern myself. Are Moneybox effectively like Raisin with the difference here being you don’t actually choose where your money goes once deposited to your account?

eskbanker

skybluearmyontour said:

Just had this concern myself. Are Moneybox effectively like Raisin with the difference here being you don’t actually choose where your money goes once deposited to your account?

Effectively, yes - the Moneybox FSCS page does now list all the banks they use for each of their products, but for some it's quite a long list....

Barkin

Hmm... hypothetical question... 

If I had  "lifetime ISA powered by Investec" via Moneybox, and also a savings account with Investec directly, I guess that my personal £85k FSCS protection would need to take both into consideration? 

eskbanker

Barkin said:

Hmm... hypothetical question... 

If I had  "lifetime ISA powered by Investec" via Moneybox, and also a savings account with Investec directly, I guess that my personal £85k FSCS protection would need to take both into consideration? 

Absolutely, which is what I assumed was the unspecified 'concern' hinted at by the previous poster.  Moneybox are clear about this:

Please note the £85,000 limit applies in aggregate to the total amount of money held by you at any one bank, whether it is deposited by Moneybox, by other providers, or by you directly with the bank.

masonic

Barkin said:

Hmm... hypothetical question... 

If I had  "lifetime ISA powered by Investec" via Moneybox, and also a savings account with Investec directly, I guess that my personal £85k FSCS protection would need to take both into consideration? 

If it was a Cash Lifetime ISA (which is not "powered by Investec"), then anywhere from 0-50% of it could be held at Investec Bank plc, so yes you should take that into consideration, but in practice it would be very difficult to do so accurately. If it were one of a few non-ISA notice accounts (the only accounts that are described as "powered by Investec"), then you'd need to ensure you included the balance in your total savings with Investec Bank.

See https://www.moneyboxapp.com/fscs-protection/

Barkin

masonic said:

Barkin said:

Hmm... hypothetical question... 

If I had  "lifetime ISA powered by Investec" via Moneybox, and also a savings account with Investec directly, I guess that my personal £85k FSCS protection would need to take both into consideration? 

If it was a Cash Lifetime ISA (which is not "powered by Investec"), then anywhere from 0-50% of it could be held at Investec Bank plc, so yes you should take that into consideration, but in practice it would be very difficult to do so accurately. 

That was really partly what I was driving at.
Not knowing who my hypothetical money was held with, and how much - as they (Moneybox) state that it can vary over time - would make it almost impossible to keep track...

Thanks.