Money saving app Moneybox has today announced the launch of its 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.
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. The app makes it easy for people to set money aside through a combination of the popular ‘round ups’ feature and larger regular deposits.
On the other hand, 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, added: “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.”
Last year Moneybox raised £14m in a Series B funding round, bringing the total investment raised to £21.3m.