New government 'help to buy' ISA account

Options
Maisy328
Maisy328 Posts: 2 Newbie
in Savings & investments
I am interested in the governments new 'help to buy' ISA account, but I don't think you can open another one within the same tax year? I am very new to ISA's and would appreciate any advice..
As I do not currently have an ISA account should I open one now before the 6th April or would this impact on the government one?
Thanks!

Comments

  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    Options
    More precisely, you can only subscribe, i.e. pay into one cash ISA per financial year.

    I can't see any point in opening a cash ISA other than a 'help to buy' one when they eventually come out. Meanwhile save in a TSB or other interest paying current account.
    Eco Miser
    Saving money for well over half a century
  • jimjames
    jimjames Posts: 17,619 Forumite
    Photogenic Name Dropper First Anniversary First Post
    Options
    Maisy328 wrote: »
    I am interested in the governments new 'help to buy' ISA account, but I don't think you can open another one within the same tax year? I am very new to ISA's and would appreciate any advice..
    As I do not currently have an ISA account should I open one now before the 6th April or would this impact on the government one?
    Thanks!

    How much are you intending paying into this account before 6th April and what rate are you getting on it where it is at the moment?
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Maisy328
    Maisy328 Posts: 2 Newbie
    Options
    I have £10,000 that I have just inherited which is just sitting in my current account at the moment.
    If I opened an ISA today, could I get the interest for this tax year and then not open another one until the 'help to buy' one comes out?
    Thanks
  • jimjames
    jimjames Posts: 17,619 Forumite
    Photogenic Name Dropper First Anniversary First Post
    Options
    Maisy328 wrote: »
    I have £10,000 that I have just inherited which is just sitting in my current account at the moment.
    If I opened an ISA today, could I get the interest for this tax year and then not open another one until the 'help to buy' one comes out?
    Thanks

    You'll get far more money from current accounts than ISAs for that amount.

    If you put the money in an ISA this year then you'll get interest for the time it's in the account until you withdraw it. Were you expecting to get a year's worth of interest for leaving it in the account a few days?
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    Options
    Maisy328 wrote: »
    I have £10,000 that I have just inherited which is just sitting in my current account at the moment.
    I have much more than that sitting in my current accounts - earning 5% or 4%
    Maisy328 wrote: »
    If I opened an ISA today, could I get the interest for this tax year and then not open another one until the 'help to buy' one comes out?
    Thanks

    Yes, but 5 days interest is not a lot - probably less than £1. You would also get interest for every day in 2015/16 that the money was in the account.
    Eco Miser
    Saving money for well over half a century
  • redux
    redux Posts: 22,976 Forumite
    Name Dropper First Anniversary First Post
    Options
    I've seen some suggestions that if you choose accounts where the interest is paid on anniversary of opening, you might as well wait into the new tax year before starting, so that the first interest will be untaxed in the following tax year.

    (This assumes that the change in the budget isn't reversed after the election result.)
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards