After building your emergency fund, it’s time to focus on growth. Whether you’re saving for a specific goal or simply want to get your money working harder, understanding your options is key. Let’s dive into the best accounts to help you achieve your goals.

 

Boost short-term savings with cash accounts 💰

For goals within the next five years, cash savings accounts are ideal. Earn interest and grow your money. Remember, the Personal Savings Allowancelets basic-rate taxpayers earn up to £1,000 in interest tax-free!

Choosing the right account depends on your needs. Here’s a quick overview:

Easy access savings accounts

  • The most flexible type of savings account
  • Get quick access to your money with next-day withdrawals
  • Ideal if you need your savings to be readily available for any short-term purchases or an emergency fund

With the Moneybox Simple Saver, get next-day access to your money, with a maximum of one withdrawal per calendar month.

Notice savings accounts

  • Typically offer higher interest rates than easy access accounts
  • Require you to give notice (30-100 days) to make withdrawals

For example, Moneybox offers a 32 Day Notice and 95 Day Notice account. These accounts have a 32 and 95 day notice period. This means that when you make a withdrawal request, the money will be available after 32 or 95 days.

Fixed-rate savings accounts

  • Lock in an interest rate for a set time period – for example, five years
  • Your money is also locked away for that time period
  • You can’t withdraw money or switch accounts during the fixed term
  • Not currently offered by Moneybox

Cash ISAs

  • A type of ISA – counts towards your £20,000 annual ISA allowance
  • Interest earned is completely tax-free
  • Cash ISAs can be easy access or fixed-term

Moneybox has two Cash ISAs to choose from, helping you select the account that suits your needs. Get our top-paying rate while making up to three withdrawals every 12 months with our Cash ISA, or enjoy unlimited withdrawals without affecting your rate with our Open Access Cash ISA.  

You can only have one Moneybox Cash ISA account open at this time. ISA and tax rules apply. Other accounts available.

Unsure which account to choose? Click through to log in and answer a few questions, and we’ll suggest the accounts that might suit you.

Let’s go

Heads up! If inflation (the rate at which the cost of goods and services is increasing) is higher than your interest rate, your money is losing “purchasing power” over time, meaning it will buy you less in the future.

💡 Learn more about inflation and how it affects your savings and investments

 

Save for your first home with a Lifetime ISA 🏠

Lifetime ISAs are designed to help you save for your first home, but they can also be used to save for retirement. You get a 25% government bonus on all savings – that’s £1 free for every £4 you save. As you can save up to £4,000 each tax year (within your £20,000 ISA allowance), you can earn a potential £1,000 in free money each year!

Moneybox offers both Cash and Stocks & Shares LISAs:

A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid into your Lifetime ISA.

Tax treatment depends on individual circumstances and may be subject to change in the future.

Remember: if you opt for the Stocks & Shares LISA, you’ll be investing, so your capital is at risk. All investing should be regarded as long term. The value of your investments can go up and down, and you may get back less than you invest.

 

Got a cash savings buffer? Try investing 📈

When compared to saving, investing can give you higher returns over the long term. Not only does your money have time to bounce back from any market fluctuations, it’ll also benefit from compounding. Compounding means you’ll earn gains on your original investment, plus gains on your gains – and so on. These amounts can build up exponentially over time! We go into this in more detail in Step 4 – Start investing as early as you can.

If you want to build your wealth through investing, these are the two main accounts to know.

Please note that all investing should be regarded as long term. The value of your investments can go up and down, and you may get back less than you invest. ISA, Pension, and Tax rules apply.

Stocks & Shares ISAs

  • A type of ISA – counts towards your £20,000 annual ISA allowance
  • The gains you make are completely tax-free
  • Choose your level of risk and customise your allocation to invest in stocks and funds

General Investment Account

  • An easy way to invest – all you need is a UK bank account
  • Great option if you’ve already used up your £20,000 ISA allowance
  • You pay tax on gains above £3,000 – less generous than an ISA

Moneybox offers a Stocks & Shares ISA and a General Investment Account.

 

Other great ways to build wealth

Junior ISAs

  • Parents or guardians can save or invest up to £9,000 per tax year for a child
  • Separate from your personal £20,000 ISA allowance
  • Matures into a Stocks & Shares ISA when the child turns 18, then only they can access it

Personal Pensions

  • Greater control and visibility over your pension investments
  • Earn tax relief on your contributions – essentially free money!
  • Consolidate old pension pots for easier management

Moneybox offers a Junior ISA and a Personal Pension.

 

When prioritising your goals and growing your money, think about your savings and investments like a champagne tower. Fill the top glass (your most pressing goal) first, then move onto the next! It’s time for Step 4 – Start investing early to build wealth.

 

Capital at risk. All investing should be long term. The value of your investments can go up and down, and you may get back less than you invest.

A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid into your Lifetime ISA.

Tax treatment depends on individual circumstances and may be subject to change in the future.

Interest is accrued daily and paid into your account yearly on the date you opened your Cash ISA. Introductory bonus interest is calculated daily and paid following the expiry of your bonus offer period into your Cash ISA. The underlying interest rate is variable, and we’ll keep you informed if it changes.

The Simple Saver account lets you withdraw once per calendar month.

For notice accounts, notice period applies.