Multiply AI, the UK’s first fully-automated financial app provider, today announced the removal of its monthly subscription fee for Unity Mutual Lifetime ISA (LISA) customers – and launched a customer referral bonus scheme for easy access account holders.

First time homebuyers can now sign up for the LISA – offering a market-leading 1.5 percent interest rate – but without having to pay the monthly fee.

Instant access account holders will also earn a bonus rate of 0.5 percent on savings of up to £2,000. They can top that up by an extra 0.5 percent for 6 months each time they invite a friend to Multiply.

This is good news for first time buyers who need to save up a deposit of £59,000 on average – an increase of £12,000 on the amount they would have needed a year ago – and as average house prices hit a record high of £256,606 in March, according to recent Halifax research.

Vivek Madlani, CEO of Multiply AI, said: “We are passionate about giving everybody the opportunity to save for their first home. That is why we decided to remove our monthly LISA subscription fee entirely and offer a bonus rate on instant access savings.”

Through its partnership with Unity Mutual, the company launched the first LISA where the rate is guaranteed for 12 months in March this year. That means the 1.5 percent rate is guaranteed for the full 2021/2022 tax year until 5th April 2022, for both new customers and existing customers.

Most other LISA providers have dropped their rates recently and can do so again at any time with little warning, whereas Multiply AI customers get the guaranteed rate and can be confident of a good return with no surprises.

The closest competitors, Moneybox and The Nottingham, currently offer rates that are going down as low as 0.3 percent after the first year is over – putting the Unity Mutual LISA far ahead of other providers. 

Customers opening the LISA through the Multiply app get a welcome bonus of £20 which increases to £25 when the 25 percent government bonus is added.