I Notice the Moneybox Cash ISA at 5%

Gobsh

I Notice the Moneybox Cash ISA at 5%

I want to start an ISA this year with some savings accounts that are ending soon
Can I top up this ISA?
Anything I should be aware of with Moneybox?

Emmia

Gobsh said:

I Notice the Moneybox Cash ISA at 5%

I want to start an ISA this year with some savings accounts that are ending soon
Can I top up this ISA?
Anything I should be aware of with Moneybox?

I don't have the cash ISA, but I do have their S&S ISA, which I pay into weekly as well as making lump deposits.

Never had any issues, I like the app, and find the tools in it easy to use 

eskbanker

Gobsh said:

I Notice the Moneybox Cash ISA at 5%

I want to start an ISA this year with some savings accounts that are ending soon
Can I top up this ISA?
Anything I should be aware of with Moneybox?

It's an easy access product so can be topped up after opening, although there's a cap on the number of withdrawals.

The rate is variable, not fixed.

There'll be plenty of mentions of customer experiences in other threads....

refluxer

Gobsh said:

I Notice the Moneybox Cash ISA at 5%

I want to start an ISA this year with some savings accounts that are ending soon
Can I top up this ISA?
Anything I should be aware of with Moneybox?

It's an easy access cash ISA, so yes - you can deposit any time you like, bearing in mind the deposit limit for new ISA subscriptions across all your ISAs is £20,000 each tax year.

The important things to consider with that particular account are that the headline rate includes a bonus for the first year and you only get that top rate if your balance is £500 or more and you make a maximum of 3 withdrawals each account year The rate drastically reduces (to 0.75%) from the date of your 4th withdrawal or if your balance falls below £500. Interest is paid annually and, unlike your deposits, I've a feeling it has no FSCS protection.

saajan_12

Main things I would be aware of is 
1) Its a variable rate - so they can change it to whatever they like. Some other providers have fixed rates for x months or years, so even if the going rate decreases, you still get that much. Usually variable rates like Moneybox will decrease their rate roughtly in line with what the Bank of England rate does, but they already have some planned reduced rates (a) after the first year and (b) if you withdraw too much and remember technically they could do anything. 
Not a huge problem as you could move the lot somewhere else, but you're taking the risk of what rates will be available at the time. 

2) It uses other bank(s) to provide a banking license, so if there's a default then you are only covered by the government up to £85k in total from those institutions. Check if you have sufficient savings with those institutions for that to matter. 

MiserlyMartin

Well I don't know if the OP opened up this ISA but let me tell you my experience with their ISA paying 4.94%. They split the capital between different banks so if you ago over the 85k, you are ok. The one thing confusing me is that they now are appearing with an ISA paying 5.00% and the 4.94% one has slipped out of the best buy tables. Pulled?? To get the 5% one you have to be a new customer so that is a kick in the teeth for existing customers. If they want us to transfer out then in again to get it so be it! But we might not come back!

Lorian

MiserlyMartin said:

They split the capital between different banks so if you ago over the 85k, you are ok. 

That looks contrary to what their protection page says.

Kotokos

Lorian said:

MiserlyMartin said:

They split the capital between different banks so if you ago over the 85k, you are ok. 

That looks contrary to what their protection page says.

It would be helpful to elaborate don't you think?
For what it's worth it might have been better not posting your comment. 

Alexland

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

"For all of our savings products and available cash held in our investing products, Moneybox deposits your money with third party banks. These banks are covered by the FSCS and, in the event one of them fails, you would be eligible to claim up to £85,000 per person per bank for any shortfall in money. Moneybox would make the claim to the FSCS on your behalf in relation to savings products and the claim may take longer to settle than if you held an account directly with the bank (up to three months). 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."

However... my thoughts are if the failure that caused the loss was due to negligence or error by Moneybox themselves then the FSCS compensation would still only be £85k regardless of how many unrelated client money savings accounts they used.