Transferring LISAs For Higher Interest Rates

dcampion342

Hi All,

My partner and I currently have a LISA with MoneyBox but we are looking to move to Tembo because of their 4.8% Interest rate compared to MoneyBox's 3.5% (Just announced reduction).

We have had these accounts for numerous years and have a good £5k in government bonuses + interest accrued. 

I want to double check that transferring to Tembo we will keep our current accrued government bonus? 

I have spoken with Tembo LiveChat who assured me I would but because it doesn't explicitly mention it when you go through the process on the app I am hesitant. 

Can anyone help settle my mind so I can transfer and get a much higher interest rate!

Thankyou in advance 

PRAISETHESUN

The Gov bonus money forms part of your account balance and will be moved as a part of the transfer process. It won't ever be taken away from your account. Instead the Gov controls it through the 25% withdrawal penalty for a non-allowed reason. The penalty means that you effectively get 6.25% less than what you put in if you don't use it for a house purchase, retirement, or one of the other allowed reasons. Transferring between providers using the dedicated ISA transfer process is fine as you are not actually withdrawing the money.

dcampion342

PRAISETHESUN said:

The Gov bonus money forms part of your account balance and will be moved as a part of the transfer process. It won't ever be taken away from your account. Instead the Gov controls it through the 25% withdrawal penalty for a non-allowed reason. The penalty means that you effectively get 6.25% less than what you put in if you don't use it for a house purchase, retirement, or one of the other allowed reasons. Transferring between providers using the dedicated ISA transfer process is fine as you are not actually withdrawing the money.

Brilliant thanks for the clarity @PRAISETHESUN

alternate

Tembo is now 4.55% as of today.  Still worth transferring though,