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    • dude7691
    • By dude7691 20th Oct 19, 7:37 PM
    • 12Posts
    • 0Thanks
    dude7691
    Lifetime ISA mistake, need help
    • #1
    • 20th Oct 19, 7:37 PM
    Lifetime ISA mistake, need help 20th Oct 19 at 7:37 PM
    Hi Guys,
    So I opened a moneybox LISA as of around a month ago. When registering there was no option for a "Cash" or "Stocks & Shares" ISA just the options of "casual, balanced or adventurous" investment options. I chose 100% cash expecting it to open the cash ISA but the problem I have now is I have a 100% stocks and shares ISA with 100% cash, so I'm getting 0% interest vs the 1.4% I was expecting.

    Anyway moving on, I had 100 taken out by moneybox as part of their "Income boost" saving scheme and this opened the account by accident. I have since turned it off but am awaiting a 25% government bonus on that 100. I'm also transferring from a Barclays HTB ISA which I'm awaiting transfer on.

    Simply put, my problem is now I'm stuck with a LISA that's paying 0% interest and charging me 0.11% a year to keep it open. Is it safe to transfer the LISA if a bonus has already been paid to a different account? And also if I did move to another account and received the full 1000 bonus on that, how would I transfer what would become 5000 back to another LISA as they only accept deposits of 4k max I think?

    Just looking for some advice, one thing leads to another and mistakes get made sometimes I stand to lose 748 in interest over the next 4 years due to this.
Page 1
    • Ed-1
    • By Ed-1 20th Oct 19, 7:48 PM
    • 2,694 Posts
    • 1,460 Thanks
    Ed-1
    • #2
    • 20th Oct 19, 7:48 PM
    • #2
    • 20th Oct 19, 7:48 PM
    Hi Guys,
    So I opened a moneybox LISA as of around a month ago. When registering there was no option for a "Cash" or "Stocks & Shares" ISA just the options of "casual, balanced or adventurous" investment options. I chose 100% cash expecting it to open the cash ISA but the problem I have now is I have a 100% stocks and shares ISA with 100% cash, so I'm getting 0% interest vs the 1.4% I was expecting.

    Anyway moving on, I had 100 taken out by moneybox as part of their "Income boost" saving scheme and this opened the account by accident. I have since turned it off but am awaiting a 25% government bonus on that 100. I'm also transferring from a Barclays HTB ISA which I'm awaiting transfer on.

    Simply put, my problem is now I'm stuck with a LISA that's paying 0% interest and charging me 0.11% a year to keep it open. Is it safe to transfer the LISA if a bonus has already been paid to a different account? And also if I did move to another account and received the full 1000 bonus on that, how would I transfer what would become 5000 back to another LISA as they only accept deposits of 4k max I think?

    Just looking for some advice, one thing leads to another and mistakes get made sometimes I stand to lose 748 in interest over the next 4 years due to this.
    Originally posted by dude7691
    You don't transfer it yourself. You need to request a formal Lifetime ISA transfer to transfer the full balance in to the new LISA. You need to open a MoneyBox CASH Lifetime ISA with a zero balance and then fill in the MoneyBox Lifetime ISA transfer form (which you can get emailed through the app) to transfer your MoneyBox S&S LISA to a MoneyBox Cash LISA!
    • dude7691
    • By dude7691 20th Oct 19, 7:57 PM
    • 12 Posts
    • 0 Thanks
    dude7691
    • #3
    • 20th Oct 19, 7:57 PM
    • #3
    • 20th Oct 19, 7:57 PM
    You don't transfer it yourself. You need to request a formal Lifetime ISA transfer to transfer the full balance in to the new LISA. You need to open a MoneyBox CASH Lifetime ISA with a zero balance and then fill in the MoneyBox Lifetime ISA transfer form (which you can get emailed through the app) to transfer your MoneyBox S&S LISA to a MoneyBox Cash LISA!
    Originally posted by Ed-1
    Hi there,

    Yes that's right I did that with my Barclays Help to Buy ISA. That's the thing, Moneybox don't accept transfers from a S&S LISA to a Cash LISA, so I can't transfer it now. They said they're working to make the service available but who knows how long that will take. They told me the only workaround is to transfer out to another provider, then transfer back in to them. But seeing as the transfer process takes so long I don't want to risk not getting my bonus paid this year, as I've lost 1000 then.
    • Ed-1
    • By Ed-1 20th Oct 19, 9:04 PM
    • 2,694 Posts
    • 1,460 Thanks
    Ed-1
    • #4
    • 20th Oct 19, 9:04 PM
    • #4
    • 20th Oct 19, 9:04 PM
    Hi there,

    Yes that's right I did that with my Barclays Help to Buy ISA. That's the thing, Moneybox don't accept transfers from a S&S LISA to a Cash LISA, so I can't transfer it now. They said they're working to make the service available but who knows how long that will take. They told me the only workaround is to transfer out to another provider, then transfer back in to them. But seeing as the transfer process takes so long I don't want to risk not getting my bonus paid this year, as I've lost 1000 then.
    Originally posted by dude7691
    Your bonus will be paid however long it takes (as long as you pay in the full 4,000 by 5th April 2020 you'll get the full 1,000 bonus).

    The transfer process is normally pretty quick anyway. It's unusual that it would be longer than 30 days.

    Once you've transferred you can continue paying in within your current year allowance.
    • dude7691
    • By dude7691 20th Oct 19, 10:50 PM
    • 12 Posts
    • 0 Thanks
    dude7691
    • #5
    • 20th Oct 19, 10:50 PM
    • #5
    • 20th Oct 19, 10:50 PM
    Your bonus will be paid however long it takes (as long as you pay in the full 4,000 by 5th April 2020 you'll get the full 1,000 bonus).

    The transfer process is normally pretty quick anyway. It's unusual that it would be longer than 30 days.

    Once you've transferred you can continue paying in within your current year allowance.
    Originally posted by Ed-1
    Yeah that makes sense, thank you.
    One other question I have, will I be okay moving from Moneybox to another provider even if the bonus is still awaiting payment? I'll have 1700 in there by the time the barclays ISA moves across, but I'll have to wait another month to get the bonus. As soon as the transfer is done can I move it and the bonus will just come through on my new Lifetime ISA?

    Here's the issue, say the 1700 gets a 425 bonus that's great, my total is now 2125.
    I move it to the new ISA with 2125, can I now only pay in 1875 and only receive the bonus on that? Or does the 425 extra not count towards my LISA allowance and thus I can just put 2300 more in and receive the remaining 575 bonus? If it's the former, I'll only get 468.75, a loss of 106.25.

    I know it sounds like I'm being overly petty here but none of this stuff is outlined anywhere
    • Ed-1
    • By Ed-1 20th Oct 19, 11:41 PM
    • 2,694 Posts
    • 1,460 Thanks
    Ed-1
    • #6
    • 20th Oct 19, 11:41 PM
    • #6
    • 20th Oct 19, 11:41 PM
    Yeah that makes sense, thank you.
    One other question I have, will I be okay moving from Moneybox to another provider even if the bonus is still awaiting payment? I'll have 1700 in there by the time the barclays ISA moves across, but I'll have to wait another month to get the bonus. As soon as the transfer is done can I move it and the bonus will just come through on my new Lifetime ISA?

    Here's the issue, say the 1700 gets a 425 bonus that's great, my total is now 2125.
    I move it to the new ISA with 2125, can I now only pay in 1875 and only receive the bonus on that? Or does the 425 extra not count towards my LISA allowance and thus I can just put 2300 more in and receive the remaining 575 bonus? If it's the former, I'll only get 468.75, a loss of 106.25.

    I know it sounds like I'm being overly petty here but none of this stuff is outlined anywhere
    Originally posted by dude7691
    The bonus does not count towards your LISA allowance. Any bonus due that has not been claimed or paid when the LISA has been transferred will be claimed by the new provider or forwarded on to the new provider depending on what stage in the cycle it's at.
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