The new Cash Lifetime ISA has a “market-leading” 1.4 per cent rate, according to the two firms.
OakNorth’s growing role as the go-to ISA partner to the digital disruptors of UK fintech has been further cemented. The bank, which was briefly Europe’s most valuable fintech earlier this year, has today joined forces with Moneybox to offer the latter’s 200k-strong, and growing, user base a Cash Lifetime ISA.
The Moneybox Cash Lifetime ISA, with an interest rate of 1.4 per cent, is designed to help customers who are saving for their first home with its government-backed 25 per cent bonus up to £1,000 per year. Users can open an account with £1.
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 per cent. The net effect of the 25 per cent bonus, then 25 per cent charge is that you lose £6.25 per each £100 you pay in.
Nutmeg is another fintech offering the Lifetime ISA while, Skipton - the UK’s fourth largest building society - says it has had over 130,000 accounts opened to date.
Launched in August 2016 by entrepreneurs Ben Stanway (pictured left) and Charlie Mortimer (pictured right), Moneybox first came to market offering round-ups, a very popular feature now available across a gamut of digital banks including Monzo, Starling and Revolut.
It now offers Stocks & Shares ISA, Stocks & Shares Lifetime ISA, General Investment Account, Stocks & Shares Junior ISA and now the Cash Lifetime ISA. Most recently available in ‘socially responsible’ funds. It says it will soon also launch a pensions offering.
Stanway, co-founder of Moneybox, said: 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.”