ISA challenger

Financial Chat Fintech Chat
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As in a number of other threads, a lot of people are obviously looking for information on interest on balances. It seems unlikely that a pot will get an interest rate from what I’ve read…

What I’m wondering is whether there is or ever will be a replacement for big bank ISA…

I’ve had to keep a number of accounts going with other banks which id prefer to move under the monzo banner, simply because an ISA is a nice lazy, safe way of holding onto cash.

Does anyone know of a challenger that would come into the market and offer this product and possibly fall into the monzo market place (integration)?

I’m assuming someone here has some inside knowledge on how ISAs Work and likely reasoning for these not existing/existing…

A take on ISA such as Atom took on bonds…

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You can open a Stocks and Shares and Lifetime ISA with Moneybox. I’d imagine that they would be one of the first companies to have marketplace integration considering they already work with Monzo for the round ups.

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Thanks! And good point! Any ideas on a more boring stable savings ISA…

Edit: interesting … https://www.moneyboxapp.com/lifetime-isa/

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I’m afraid not, I know OakNorth do a cash ISA if you’re looking for something a little more stable.

I know they’re supposed to be a challenger bank as well. They featured in the Monzo Marketplace beta for a while so that might hint at an integration being likely in the future?

https://www.oaknorth.com/en_GB/saving/fixed-rate-cash-isa

Not certain I’m afraid though :slightly_smiling_face:

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5

I quite like premium bonds. The income is a little inconsistent but you’ve got easy access to the money (3-7 days) and it’s all tax wrapped.

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I have one of these LISA things, need to make a reasonable weekly/monthly deposit to cover the MoneyBox fees though.

It also helps that the 25% gov bonus is now paid monthly too, yay for compounding!

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Options:

  1. Instant Access Cash ISA at legacy bank (which you’re already doing)
  2. Stocks and Shares ISA selecting a low risk portfolio with a robo-adviser (Wealthify or Moneyfarm have zero withdrawals fees, no minimum deposit & are almost certain to be in the Monzo marketplace)
  3. Innovative Finance ISA with a Peer 2 Peer Lender e.g. Ratesetter, Funding Circle, Zopa et al. (Many of these are still under development at my last check)
  4. LISA (not a good option if you need liquidity)
  5. Help to Buy ISA (not a good option if you need liquidity or are just not saving for a house)
  6. I’m sure there are 6 ISAs but the last one has lost me, but a good option could be Chip (it’s not an ISA but you can earn 1% interest for a year for every referral up to 5%max per year)

P.S. this is off the top of my head should give some direction hopefully.
Edit: The 6th ISA is the Junior ISA which doesn’t apply here :smile:

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Hi, not sure if they are a challenger anymore as they’re quite mainstream but Nutmeg’s app is a joy to use and I’ve been really happy with the performance of my investment and, more importantly, ease of use. They would be a great partner for the marketplace.

While talking about financial disruptors, I’ve also swapped my pensions to Pensionbee recently and would recommend. How they don’t have an app yet is beyond me though…

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Pensionbee does have an app that is under controlled beta atm. I’m in the process of transferring one small pension pot.

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Hi @andrewpclark, Jasper here from PensionBee. Buzz me your email address (jasper@pensionbee.com) and what device you use (iOS or Android) and I’ll send you an invite to test our beta app.
App is basic but I’ll release our roadmap for new features soon!
Jasper

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Thanks Jasper, I’ve just pinged you. Pensionbee has effortlessly consolidated my old pensions and I’m a massive fan. Best wishes.

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I’m debating on moving my old work pension over to Pension Bee… need to work out the fees and stuff though.

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Danny, our fees are here https://www.pensionbee.com/fees. Give me a buzz if you have questions!

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Sorry I meant the one I am with now vs pensionbee…

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Still doesn’t seem to be any boring ISA offerings in the challenger space - sigh :pensive:

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How are you defining challenger bank?

There are several online-only banks launched in the last 3-4 years who offer cash ISAs, e.g. Aldermore Bank, Charter Savings Bank, OakNorth Bank, Paragon Bank, Shawbrook Bank. I expect these banks consider themselves challenger banks.

There’s also at least one bank with a high street presence who probably considers itself a challenger bank and offers cash ISAs - Metro Bank.

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You sir have opened a stupid man’s eyes - I retract my silly previous comment - thank you

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The fees depend on what plan you go with and my god the UI for the site is much better than any pension provider i’ve ever used before. If you’re going to sign up use my referral and we both get £50 bonus in our pension pots!

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