Moneybox launches best buy easy-access cash Isa paying 4.65%

Savings and investing platform Moneybox has launched a new best buy cash Isa, paying a rate of 4.65 per cent on deposits of £500 or more.

It is the first time Moneybox has launched a cash Isa and the rate includes a bonus  of 0.85 per cent for the first 12 months.   

Savers wishing to open this cash Isa should also note that a lower rate of 0.75 per cent will be applied if your account balance dips below £500.

The new cash Isa isn’t strictly easy-access, as it allows three withdrawals within each 12-month period from the date the account is opened.

It means that if you make a fourth withdrawal within a 12-month period, the interest rate will be adjusted to 0.75 per cent for the remainder of that period.

The Moneybox Isa allows transfers in from other Isa providers. The Isa allowance for 2023-24 is £20,000.

The previous best buy cash Isa was offered by Cynergy Bank, paying 4.5 per cent.

Cash Isas are having a moment in the sun. The Bank of England’s most recent Money and Credit report showed that more money poured into tax-free cash Isas than ever before in July – with inflows of £3billion.

Rising interest rates could result in consumers with larger savings pots breaching their individual allowance, which is why Isas offer considerably more suitable longer-term tax-free benefits.

Brian Byrnes, of Moneybox, said: ‘We are passionate about helping people build and embed positive savings behaviours in order to grow their money and build wealth throughout life.

‘With current bank rates at their highest in over a decade, it has never been more important to make sure our money is working as hard as possible.

Moneybox says that launched its cash Isa three days ago, but only to current customer initially. 

Since then, it says thousands of cash Isas have been opened and millions in funds deposited.

To open a Moneybox account, you will need to download its app. Moneybox is part of the Financial Services Compensation Scheme, which protects savers to the tune of £85,000.