Moneybox, the money saving app, recently announced the launch of its Cash Lifetime ISA, powered by OakNorth Bank. The ISA will offer a market-leading interest rate of 1.4% AER variable.
The Moneybox Cash Lifetime ISA is designed to help customers in saving for their first home, a feat that can seem near impossible for many young people. For some time, the government has offered a Lifetime ISA, with a 25% bonus up to £1,000 per year, it can offer much needed support to millennials looking to buy their first home. However, few banks have chosen to offer it.
After raising £14m in a Series B funding last year, MoneyBox, the London-based startup, now has more than 200,000 customers. The company is on a mission to help a generation save and invest for their future. The startup’s award-winning app lets people easily and quickly set aside money, through their popular ‘round ups’ feature and larger regular deposits.
OakNorth Bank has been developing its savings platform since 2015, and now offers a wide range of competitive and award-winning savings products.
Amir Nooriala, Chief Strategy Officer from OakNorth Bank, said: “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.”
The co-founder of Moneybox, Ben Stanway, 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.”