Moneybox launches market-leading cash lifetime ISA - MSE News
Former_MSE_Callum
Posts: 696 Forumite
Financial app Moneybox has launched a cash Lifetime ISA with a market-leading rate of 1.4%...
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'Moneybox launches market-leading cash lifetime ISA'
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'Moneybox launches market-leading cash lifetime ISA'
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Comments
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I literally just filled in the forms for another LISA last week, and transferred the £1 opening deposit. I've not yet sent in my ID. I assume to take advantage of this one, I would now need to complete the account opening and then transfer the LISA? I'd been waiting for ages to see if a better account became available, but time was running out to open one (getting closer to hitting 40!).0
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Lucky I'm too old, not sure how the younger generation put up with such offers 1.4% well below inflation.
It's shameful when a rate of 1.4% is considered news worthy and market leading.0 -
I don't see why it's "shameful" - there's no denying that the current interest rate environment is significantly lower than what older generations fondly recall, but inflation is also correspondingly lower.Lucky I'm too old, not sure how the younger generation put up with such offers 1.4% well below inflation.
It's shameful when a rate of 1.4% is considered news worthy and market leading.
However, there's also no denying that factually it is a market-leading product, and by a distance, but in any case the key feature of cash LISAs is the 25% government bonus, which trumps the interest by some margin for those saving for their first property.0 -
Finally, Moneybox offers a financial product that's suitable for its target market.0
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A graph of those fond memories in this article...
https://www.thisismoney.co.uk/money/news/article-2387744/Base-rate-vs-inflation-chart-How-tell-things-really-got-better.html
Only shows base rates, not the higher rates on offer from Building Societies and Banks.0 -
Statistics can be presented in any number of ways to support conflicting opinions - that article was from mid 2013, immediately before inflation plummeted to the extent of several deflationary months in 2015!A graph of those fond memories in this article...
https://www.thisismoney.co.uk/money/news/article-2387744/Base-rate-vs-inflation-chart-How-tell-things-really-got-better.html
Only shows base rates, not the higher rates on offer from Building Societies and Banks.
However, there's no doubt that sub-inflation interest rates have been the rule rather than the exception during the eleven years since the financial crisis so that's what "the younger generation" will be familiar with, even if they do have to put up with elders wistfully reminiscing about how things were so much better in their day.
Your comment might have been better made two years ago when Skipton launched the first cash LISA, featuring an interest rate that was 2.4% below published inflation at the time, so a new product only 0.6% below the most recent CPI figure is definitely heading in the right direction - it may not exactly be cause to crack open the bubbly but equally it's hard to argue it's shameful in the context of what's gone before it since LISAs were launched....0 -
I do wonder how simple it will be to redeem - I have reservations about an app based support vs. a traditional building society (I'm with Skipton at the moment) where you/conveyancer can get on the phone to complain about any hold ups!
I have signed up to transfer though, an extra £50+ per year in interest isn't insignificant. Plus hopefully if providers see an exodus, they'll actually think about paying a decent rate.
Can you transfer twice in one tax year? If another new entrant came along/somebody else does actually up the rate?0 -
Somerset_La_La_La wrote: »
Can you transfer twice in one tax year? If another new entrant came along/somebody else does actually up the rate?
You can transfer as many times as you like, though any transfer is subject to the transferee ISA manager being willing to accept your transfer, which will depend on their own policies.0 -
Lucky I'm too old, not sure how the younger generation put up with such offers 1.4% well below inflation.
It's shameful when a rate of 1.4% is considered news worthy and market leading.
At present it's roughly worth about £40 in interest for my LISA. I'd rather been notified of that, than not.
I'll wait to see if Skipton respond with an improvement to their rate. If not, I'll be considering moving across.0 -
I have LISA with Skipton for my pension, does anyone know if i can transfer this over or is it for house buyers only atm? thanks0
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