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Moneybox joins forces with OakNorth Bank to launch Cash Lifetime ISA with market-leading 1.4% rate

  • The Cash Lifetime ISA (LISA) will offer a market-leading rate of 1.4% AER variable – 0.3% higher than the current leading rate.
  • With its 25% government bonus of up to £1,000 per year, the Lifetime ISA offers a meaningful boost to young savers.

2nd July 2019: Moneybox have today announced the launch of their Cash Lifetime ISA, powered by OakNorth Bank, offering a market-leading interest rate of 1.4% AER variable.

The Moneybox Cash Lifetime ISA is designed to help customers who are saving for their first home.

For many young people, getting on the property ladder continues to feel like a pipe dream. The government’s introduction of the Lifetime ISA, with its 25% bonus up to £1,000 per year, was a welcome step for millennials but surprisingly few banks have chosen to offer it.

Moneybox and OakNorth Bank have joined forces to offer a market-leading product, which will help young people to grow their savings faster and realise their ambitions to buy their first home.

With more than 200,000 customers, Moneybox is on a mission to help a generation save and invest for their future, whether they’re saving for a house, retirement or simply a rainy day. Its award-winning app makes it easy for people to set money aside through a combination of the popular ‘round ups’ feature and larger regular deposits.

Meanwhile, OakNorth Bank, which has been developing its savings platform since 2015, already offers a wide range of competitive and award-winning savings products which have helped it attract billions of pounds in deposits to help fund its lending to British businesses.

Amir Nooriala, Chief Strategy Officer from OakNorth Bank, commented: “Since our launch in September 2015, we have proven our ability to innovate in the U.K. savings market, which has been recognised with various savings awards. Through this partnership with Moneybox, we’re highlighting the importance of financial literacy, streamlining difficult processes and releasing a market-leading interest rate that helps customers to save for their first home, as well as benefit from the 25% government bonus.”

Ben Stanway, co-founder of Moneybox, commented: “The Lifetime ISA provides a much-needed helping hand to young people who are trying to get on the property ladder and we’ve been very surprised to see so few banks make it available to their customers. We hope that by offering a market-leading rate through our partnership with OakNorth Bank, we can encourage many more people to take advantage of the free money being offered by the government.”

ENDS

Key features

  • The Moneybox Cash Lifetime ISA offers a market-leading rate of 1.4% AER variable.
  • It is available through the Moneybox app on iPhone and Android.
  • It can be opened with £1.
  • Transfers from any existing ISAs are accepted.
  • Interest is accrued daily and paid monthly.
  • OakNorth Bank is covered by the Financial Services Compensation Scheme so any eligible customer deposits up to £85,000 are protected.
  • The Lifetime ISA can be used to buy your first home or for retirement after age 60. If you withdraw in the first 12 months of opening the Lifetime ISA or for any reason other than buying your first home or retirement, you will pay a government charge of 25%. The net effect of the 25% bonus, then 25% charge is that you lose £6.25 per each £100 you pay in.
  • This product and market-leading rate is only available through the Moneybox app.
  • There are no account fees for this product.

About Moneybox

We are helping a generation to save and invest for their future. By offering people a simple way to get started, we are breaking the inertia surrounding saving and investing and helping people lay the foundations to achieve their financial goals, whether they’re saving for their first home, retirement or simply for a rainy day. We offer a Stocks & Shares ISA, Stocks & Shares Lifetime ISA, General Investment Account, Stocks & Shares Junior ISA and now the Cash Lifetime ISA. We also offer socially responsible funds within each of the investment accounts. Our customers can save using our round up feature or set up regular payments easily through the app. Round ups allow customers to connect their bank or card account to the app and round up transactions – making it easy and accessible to start saving and investing.

Moneybox was voted Best Money App and Best for Beginners in The Times, Sunday Times and Boring Money Consumer Investment Awards 2019.

Visit the App Store or Play Store for more information.

The Moneybox Story

Launched in August 2016 by entrepreneurs Charlie Mortimer and Ben Stanway, Moneybox has already helped more than 200,000 people start their investing journey.

Charlie and Ben met at school and have known each other for 23 years. They often found themselves discussing the future of finance and how younger generations in particular were growing up without the tools or information needed to confidently build their financial future.

In 2015, Moneybox was born with the vision of helping a generation save and invest for the future.

Prior to Moneybox, Ben co-founded Bloom & Wild, recently named by Deloitte as the second fastest growing tech company in the UK. In the nine years prior to Bloom & Wild, Ben worked in fund management, first as an analyst at Fidelity Investments, then at Habrok Capital Management, a global equity hedge fund that grew to $2bn in AUM.

Charlie spent the first four years of his career in strategy consulting at OC&C. He then joined the DMGT group where he launched Wowcher and OnTrees, a personal finance app that was acquired by MoneySuperMarket in 2014. He was also the MD of online dating business, Allegran.

About OakNorth Bank

OakNorth Bank provides fast, flexible and accessible debt finance (from £500k to £40m) to fast-growth businesses and established property developers / investors.

Since its launch, the bank has:

  • Lent over £3bn, directly helping with the creation of 10,000 new homes and 13,000 new jobs in the UK;
  • Attracted savings from c.50,000 customers;
  • Won numerous awards and been recognised as one of the UK’s fastest-growing businesses being listed on the Leap 100, Tech City UK’s Future Fifty, and Fintech City’s Fintech50.

OakNorth Bank is authorised by the Prudential Regulation Authority and is regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Visit oaknorth.com for more information.