Opening a moneybox ISA when I already have £20k in a cash ISA

sc120826

I want to open a LISA and transfer in £4k so I can do the same in the new tax year and keep it there for a year or 2 with the goal of taking out the bonus when I purchase a property. The only issue is moneybag app says you can only transfer funds from a standard account not a savings account? How do I get around this? If I take £4k out my cash ISA and put it into the current account and then transfer it to the LISA will this be ok? I did read online and it said you can transfer funds from a Cash ISA to a LISA....just a bit confused on it all here!

xylophone

Do you mean Moneybox?


https://www.moneyboxapp.com/faqs/how-do-i-transfer-an-isa-or-lifetime-isa-to-moneybox/#:~:text=To get started, you'll,Settings > Transfer > Transfer in.

It appears that you open the LISA then request the transfer in?

sc120826

I did mean moneybox (autocorrect 😅). 

The transfer can be done easily but it says in the T's&C's the transfer has to come from a current account not a savings account and as I've already invested £20k into my cash ISA this year if it doesn't come out of there I'll be over the £20k limit.

refluxer

I haven't read those specific T&Cs, but are you sure you're not confusing a transfer with a cash deposit (new subscription) ? While it's possible that they might require a linked current account for a cash deposit (a new subscription from this year's ISA allowance), any such restriction won't apply to transfers.

As mentioned above, the most-likely way this would work would be to open the LISA yourself and request the transfer via whatever official transfer process Moneybox provide. I don't have a LISA myself, but that's the way it works with normal cash ISAs, at least.

Whatever you do - don't withdraw the money from your existing ISA to a current account because if you do that, you won't be able to pay it into a LISA (as you've already used up your ISA allowance for this tax year) and the only way you'd even be able to pay it back into the cash ISA it came from would be if that ISA was 'flexible'.