Moneybox boosts interest on Cash ISA to 5.25% – ‘excellent’ rating | Personal Finance | Finance
Investment app Moneybox has boosted the interest on its easy access Cash ISA to 5.25%, 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 1.05% 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 allow individuals to save up to £20,000 a year tax-free, 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 takes the market-leading position when compared against its peers.
“It now pays an attractive 5.25%, which includes a bonus of 1.05% for the first three months, so it is important savers review after this period.
“Savers looking for flexibility and instant access to their tax-free savings may find this an enticing option. Withdrawals are permitted; however, 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 added: “In more positive news, further additions are permitted at any time to the account. 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 5.25%. The deal includes a bonus rate of 0.75% for three months, and savers can launch the account with just £1. Interest is paid monthly, and withdrawals are not restricted.
Money app Plum takes the second position with an Annual Equivalent Rate (AER) of 5.02% on deposits over £100.
The rate includes a 1.46% bonus of 12 months, and interest is paid monthly. However, a lower interest rate will apply if more than three withdrawals are made in one calendar year.
