Cash ISA provider Moneybox unveils ‘market-leading’ 5.32% interest | Personal Finance | Finance
Investment app Moneybox has boosted the interest on its easy access Cash ISA to 5.32%, earning an “excellent” Moneyfacts rating. The account takes a “market-leading” position in its sector, and savers can launch it with a minimum deposit of £500.
Moneybox’s offer includes a 1.12% bonus rate for the first three months, after which the rate will drop. Up to three withdrawals are permitted per 12-month period, and interest is paid on the anniversary. Cash ISAs have grown in popularity over the past few years as higher interest rates drag more people into savings tax thresholds. These accounts currently allow individuals to save up to £20,000 a year without paying tax on interest, making them a key tool for savvy savers.
Commenting on the deal, Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk, said: “This week, Moneybox has increased the rate on its Moneybox Cash ISA. The deal continues to hold the market-leading position when compared against its peers.
“Savers looking for flexibility and instant access to their tax-free savings may find this an enticing option.”
However, she warned: “Withdrawals are permitted but they should be considered carefully as a lower rate of 0.75% is paid if four or more withdrawals are made in a 12-month period.”
She also suggested customers review the account when the 1.12% bonus period ends in three months, as the lower rate may mean it no longer places competitively when compared to other deals.
Ms Eastell continued: “In more positive news, further additions are permitted at any time into the account and investors can choose to split their Cash ISA savings across multiple ISAs within Moneybox’s range. On assessment, this deal earns an Excellent Moneyfacts product rating.”
The account is authorised by the Financial Conduct Authority (FCA), and deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
While Moneybox may be offering the top rate in the easy access Cash ISA market, other providers are closely competing.
Trading 212 joins Moneybox with an Annual Equivalent Rate (AER) of 5.32%. The deal includes a bonus rate of 0.82% for three months, and savers can launch the account with just £1. Interest is paid monthly, and withdrawals are not restricted.
Savings app Chip places just behind with an AER of 5.26%. The rate includes a 0.90% bonus for the first three months for new customers. The account can be opened with just £1, interest is paid monthly, and there are no withdrawal restrictions.
To receive the bonus rate, savers simply need to enter the code “ISASEASON” on Chip’s website. After the initial bonus period, the interest rate will revert to Chip’s standard rate of 4.32% AER, so it’s important for savers to review their accounts regularly to ensure they’re still getting a competitive return.
