Moneybox Cash ISA

Polaris1957

Hi, can anyone help me with a dilemma i have with my new Moneybox Cash Isa. Just over a month ago I selected it from the list on the MSE web and i transferred £95,000 into it as it was the highest rate at the time (pre BOE increase), it said that interest was paid monthly however i have been told by Moneybox that the interest can't be withdrawn as that would count as a "withdrawal" and you're only allowed to make four from the principal sum as such and the interest has to remain in and added monthly to it to enable the interest the compound correctly each month! Surely this is incorrect isn't it? Can anyone shed any light on this please? Thanks.

eskbanker

Which Moneybox Cash ISA should I choose?

Moneybox offers two different Cash ISAs, and currently, you can just hold one with us. If you aren’t sure which account is right for you, here’s a summary of each to help you decide:

• Our Cash ISA has an interest rate of 4.15% AER (variable), made up of an underlying rate of 3.45% and a bonus interest rate of 0.70% for the first 12 months. You’ll earn a lower interest rate of 0.75% AER (variable) if your balance falls below £500, or if you withdraw four or more times within the 12 month period from the date of opening your Cash ISA. The number of withdrawals you can make without impacting your rate will reset yearly on the date you opened your Cash ISA.

• Our Open Access Cash ISA offers an interest rate of 3.95% AER (variable), made up of an underlying rate of 3.25% and a bonus interest rate of 0.70% for your first year. Like our Cash ISA, you’ll need to maintain a balance of at least £500 to earn the higher (a lower rate of 0.75% will apply to balances under £500). However, there are no restrictions on the number of withdrawals you can make, so you can withdraw as many times as you need without impacting your interest rate.

https://www.moneyboxapp.com/faqs/which-moneybox-cash-isa-should-i-choose/

If you have the Cash ISA, rather than the Open Access one, then yes, making more than four withdrawals will reduce your interest rate (but are permitted).

Woodstok2000

Looks like you opened the cash isa, which is limited to 3 withdrawals (not 4) before your rate reduces. The open access isa allows unlimited withdrawals.

Ayr_Rage

The product information on Moneyfacts says that interest is paid monthly but must be compounded so it then becomes part of the capital, it cannot be paid away.

They are correct and you can only make 3 withdrawals in a year without losing out.

4 or more withdrawals means the rate drops.

Alexland

eskbanker said:

If you have the Cash ISA, rather than the Open Access one, then yes, making more than four withdrawals will reduce your interest rate (but are permitted).

IMHO it's pretty misleading of Moneybox calling the one with special withdrawal considerations simply "Cash ISA" given they are both Cash ISAs. It's easy to see how consumers could get confused as the simplest bog standard named one is unexpectedly the most complicated. It's really not intuitive.

If I was the OP then I'd be tempted to raise a complaint if only to raise attention to the issue and get them to come up with a more meaningful name similar to how Nationwide have a "Triple Access Cash ISA".