- Investment ISA and Lifetime ISA (LISA) customers can earn 5.09% AER variable on money held as cash with AJ Bell’s Dodl app from 1 July
- New cash interest rate is the highest across the market for any LISA account
- AJ Bell is also developing a new suite of educational content on Dodl so that ISA savers can earn interest, whilst learning about the long-term benefits of investing and building the confidence to get started
- The service is expected to appeal to the 4.2 million people who have £10,000 in cash and have appetite to take investment risk*
- Dodl offers a simple range of ready-made funds, themed investments and shares for a low annual fee of 0.15% per account, with a £1 a month minimum charge
AJ Bell’s Dodl app today launches a market-leading 5.09% AER variable rate of interest on cash on its investment ISA and investment LISA as part of a new drive to help cash savers get into investing. The new rate is effective from today (1 July), with no fixed-term restrictions applied by AJ Bell or bonus rate tied to the offer.
Once a new Dodl ISA or LISA has been opened, investors can get started with a minimum deposit of £100 cash or £25 direct debit, with the normal annual ISA and LISA subscription limits applying of £20,000 and £4,000 respectively. There are no restrictions to the amount that can be transferred to Dodl from existing ISAs.
The rate is available to both new and existing customers, and it takes just a few minutes to setup an account and start the transfer process from another ISA provider.
It means Dodl Lifetime ISA customers will earn the market-leading rate of interest on their cash savings, and ISA holders will enjoy one of the best rates available**.
Dodl offers a simplified range of funds and shares through its straightforward investing app to make it easy for new investors to get started. The new 5.09% rate of interest on cash means that savers can now use the app to earn interest while they learn about investing via Dodl’s Learn Centre. This provides a range of guides and information to help people build up their knowledge about investing and how to get started with their money when they feel ready to invest for the long-term.
Customers can download the app to open an account by searching for ‘AJ Bell Dodl’ on Google Play or the App Store on their phone or mobile device, or by visiting the Dodl website and scanning the QR code.
AJ Bell managing director, Charlie Musson, says:
“This exciting new offer means customers can earn and learn at the same time, benefitting from a highly attractive rate of interest on cash savings while they build knowledge about the benefits of long-term investing.
“By offering a leading rate of interest on cash deposits on the Dodl app, we’re giving customers the flexibility to save and invest in one place. For beginner investors it gives them the opportunity to build up cash savings and start investing when they feel ready.
“The easy to use Dodl app makes saving and investing straightforward, with a simple range of ready-made funds, themed investments and shares to help people get started investing. When customers invest with Dodl they benefit from some of the lowest investment platform charges in the UK.”
*FCA Consumer Investments Strategy: Among consumers with £10,000 or more of investible assets, 58% (9.7 million UK adults) held the majority (75%+) or all of this in cash in 2022. Of these over two-fifths (4.2 million UK adults) said they had some appetite to take risk when investing.
**As at 1 July 2024 the leading rate on a Lifetime ISA is 5% AER and 5.2% AER on a easy access ISA account, according to Moneyfacts
Background & FAQ
How will interest be calculated?
Interest will accrue daily and is calculated on a compound basis. It will be paid directly to customer ISA and LISA accounts quarterly.
Interest will be earned on all cash not invested in the account, including any government bonus paid on LISA deposits.
Is this for new and existing customers?
Yes, the 5.09% AER variable rate on cash will be paid to all new and existing ISA and LISA customers from 1 July 2024.
Is there a maximum or minimum deposit?
There is no maximum limit on the amount of money customers can transfer from another ISA although the normal ISA and LISA annual allowances apply to new money paid in.
The minimum deposit into a Dodl ISA is £100 cash or £25 direct debit.
Is this an introductory offer or time-limited?
No, there is no time limit on the offer or an introductory rate. It is a variable rate that will be adjusted in relation to the base rate.
Can I withdraw my money?
Yes, money can be withdrawn and paid out at any time.
The government early withdrawal charges may apply to LISA withdrawals.
Can I move my money to Dodl?
Yes, you can transfer an ISA or LISA account to Dodl from any existing provider. Interest will be paid from the date the cash is moved to the Dodl account.
To transfer an account setup the ISA and/or LISA account in the AJ Bell Dodl app. At the end of the process you’ll be given the option to transfer an account from another provider.
Is this a cash ISA or an investment account?
Both the AJ Bell Dodl ISA and LISA are investment accounts. The 5.09% AER rate is paid on cash held in the accounts, giving customers the flexibility to save and earn an attractive rate of interest on cash, and then invest when they’re ready.
Is my money safe?
AJ Bell is authorised and regulated by the Financial Conduct Authority and money is protected under the Financial Services Compensation Scheme (FSCS) up to £85,000.