Moneybox Cash ISA - 5.15%

stephen.jillians

 Hello Forumites

I watched the MSE money show this week & I currently have a maxed-out Cash ISA (20K) with Moneybox receiving 5.19% till 11-Feb-2025 with a 0.94% bonus (then 4.25% thereafter; 20K paid in during Apr-2023)

They are currently offering 5.15% on their cash ISA (including a bonus of 0.45%) which is higher than most traditional easy access savings accounts on the market as Martin explained 

Did I understand Martin's instruction correctly, that I may be actually to pay even more savings into my current cash ISA even though I've already maxed-out this fiscal year & continue to receive my existing rate but pay the appropriate income tax on the excess contributions above 20K ?

This means I could transfer savings from elsewhere to get 5.19% rather than around 4.7% (where the interest is taxable in both cases but 5.19% is of course better than 4.7%)

I hope I've explained this query clearly
Thanks for any confirmatory insights 🙂

friolento

Last time I looked at the Moneybox ISA, they did not pay their top rate on ISAs transferred in. This is a deal breaker for me. 

friolento

stephen.jillians said:

  

Did I understand Martin's instruction correctly, that I may be actually to pay even more savings into my current cash ISA even though I've already maxed-out this fiscal year & continue to receive my existing rate but pay the appropriate income tax on the excess contributions above 20K ?

 

I did not watch that show but would be surprised if ML recommended to bust your annual ISA limit

You will not get the tax relief on more than £20k new money into ISAs in the same tax year.

If you do pay in more, e.g. by using several different providers, HMRC will eventually catch up with you and  most likely instruct your ISA provider to cancel excessive deposits and interest thereof.

Sg28

https://www.moneyboxapp.com/cash-isa

At first glance looks like you can transfer in for the 5.15%.

Max 3 withdrawals per year.

ToastLady

stephen.jillians said:

 Hello Forumites

I watched the MSE money show this week & I currently have a maxed-out Cash ISA (20K) with Moneybox receiving 5.19% till 11-Feb-2025 with a 0.94% bonus (then 4.25% thereafter; 20K paid in during Apr-2023)

They are currently offering 5.15% on their cash ISA (including a bonus of 0.45%) which is higher than most traditional easy access savings accounts on the market as Martin explained 

Did I understand Martin's instruction correctly, that I may be actually to pay even more savings into my current cash ISA even though I've already maxed-out this fiscal year & continue to receive my existing rate but pay the appropriate income tax on the excess contributions above 20K ?

This means I could transfer savings from elsewhere to get 5.19% rather than around 4.7% (where the interest is taxable in both cases but 5.19% is of course better than 4.7%)

I hope I've explained this query clearly
Thanks for any confirmatory insights 🙂

Have you maxed out ISA for this year or last year? You say money was paid in April 2023, in which case you would still have 20K allowance for this tax year to fund an ISA.

PixelPound

You will also lose a week of interest
https://www.moneyboxapp.com/faqs/deposits-and-withdrawals/time-until-first-investment/?

stephen.jillians

ToastLady said:

stephen.jillians said:

 Hello Forumites

I watched the MSE money show this week & I currently have a maxed-out Cash ISA (20K) with Moneybox receiving 5.19% till 11-Feb-2025 with a 0.94% bonus (then 4.25% thereafter; 20K paid in during Apr-2023)

Have you maxed out ISA for this year or last year? You say money was paid in April 2023, in which case you would still have 20K allowance for this tax year to fund an ISA.

My apologies; that was a mistake. I did mean Apr-2024. My question I suppose really, is do ISA providers allow you to pay more than 20K into a Cash ISA knowing that you can only benefit from the first 20K being free of tax. The remainder being subject to tax in the normal way but the investor still being able to benefit from the decent interest rate (currently higher than most in the traditional easy access product market)
Thank you 👍

ToastLady

stephen.jillians said:

ToastLady said:

stephen.jillians said:

 Hello Forumites

I watched the MSE money show this week & I currently have a maxed-out Cash ISA (20K) with Moneybox receiving 5.19% till 11-Feb-2025 with a 0.94% bonus (then 4.25% thereafter; 20K paid in during Apr-2023)

Have you maxed out ISA for this year or last year? You say money was paid in April 2023, in which case you would still have 20K allowance for this tax year to fund an ISA.

My apologies; that was a mistake. I did mean Apr-2024. My question I suppose really, is do ISA providers allow you to pay more than 20K into a Cash ISA knowing that you can only benefit from the first 20K being free of tax. The remainder being subject to tax in the normal way but the investor still being able to benefit from the decent interest rate (currently higher than most in the traditional easy access product market)
Thank you 👍

Afraid not. You are limited to 20K per fiscal year in ISA(s).

gt94sss2

stephen.jillians said:

ToastLady said:

stephen.jillians said:

 Hello Forumites

I watched the MSE money show this week & I currently have a maxed-out Cash ISA (20K) with Moneybox receiving 5.19% till 11-Feb-2025 with a 0.94% bonus (then 4.25% thereafter; 20K paid in during Apr-2023)

Have you maxed out ISA for this year or last year? You say money was paid in April 2023, in which case you would still have 20K allowance for this tax year to fund an ISA.

My apologies; that was a mistake. I did mean Apr-2024. My question I suppose really, is do ISA providers allow you to pay more than 20K into a Cash ISA knowing that you can only benefit from the first 20K being free of tax. 

No. If you try and exceed the 20k limit, expect HMRC to be very unhappy with you.