Moneybox and Chip - Cash ISA as a previous customer

Roadrunner2004

I held my cash ISA with Chip for the 2023/24 tax year. When the rate dropped I transferred it to Moneybox for the 2024/25 tax year.

I was very happy with my customer experience of both companies, and could not fault them.

During March 2025 my 12-month bonus rate with Moneybox expired, so like many others I chose to move it across to Tembo's 4.8% Cash ISA using the normal ISA transfer process.

Since then I have seen both Moneybox and Chip increase their rates to over 5%.

As I still have other products with each company (LISA with Moneybox, and instant access savings with Chip) I tried to open a new cash ISA with each company in the hope of simply transferring my entire Cash ISA balance back across to either one (waiting until 6th April before adding any new ISA subscriptions). I was unable to do so.

Both Moneybox and Chip told me that as I had previously held an account with them that had since been closed, I was now not allowed to have another ISA product (or in their words to "reopen a closed account") with either of them.

Just wondering if anyone else had a similar experience with either of them?

eskbanker

Yes, it's a known feature that neither will let leavers return:

Please note that if you are transferring out to another provider, it isn’t currently possible to transfer back to Moneybox once the transfer out is complete.

https://www.moneyboxapp.com/faqs/how-do-i-transfer-my-moneybox-isa-to-another-provider/

Please note that when transferring your cash ISA out of Chip, your Chip Cash ISA will automatically be closed once the transfer is complete and you won't be able to reopen it once it's closed.

https://intercom.help/get-chip/en/articles/8856781-the-chip-cash-isa-faqs#h_becdada0f9

Roadrunner2004

Thanks eskbanker. I wasn’t aware of that.

I fully appreciate that each company is well within their rights to decide on which customer groups to target or not. It just seems like a bizarre business decision to close off a chunk of the market who would consider depositing with a “lesser known” brand.

eskbanker

Roadrunner2004 said:

Thanks eskbanker. I wasn’t aware of that.

I fully appreciate that each company is well within their rights to decide on which customer groups to target or not. It just seems like a bizarre business decision to close off a chunk of the market who would consider depositing with a “lesser known” brand.

To be fair, they're closing off those who already did deposit with a lesser known brand but chose to go elsewhere after doing so!

Emmia

Roadrunner2004 said:

Thanks eskbanker. I wasn’t aware of that.

I fully appreciate that each company is well within their rights to decide on which customer groups to target or not. It just seems like a bizarre business decision to close off a chunk of the market who would consider depositing with a “lesser known” brand.

It's presumably intended to get people to stay with them, rather than rate chasing as you have. Both companies want to grow, and having lots of  "rate tarts" for customers means their customer base, amounts on deposit etc. would be uncertain.

Tembo (another lesser known provider) might also have the same restrictions on closure and reopening.