Can I pay money into a Help to Buy ISA and Savings ISA in the same year?

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lis-lou
lis-lou Posts: 11 Forumite
in Savings & investments
I opened a Savings ISA around 5yrs ago and my Help to Buy ISA last year. Can I pay money into both of these accounts in the same tax year or can I only pay money into one of these accounts in one tax year? I want to pay £200 into my help to buy each month but I also want to pay some into my Savings ISA as well, is this possible?
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  • Money_Help
    Money_Help Posts: 63 Forumite
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    You can't pay into a cash ISA and Help to Buy ISA in the same tax year. Although you can pay into a cash ISA first and then potentially transfer this into a Help to Buy: https://www.helptobuy.gov.uk/help-to-buy-isa/faq/

    Apparently there are some providers that allow you to combine a cash ISA and Help to Buy ISA into one ISA wrapper: https://www.moneysavingexpert.com/savings/help-to-buy-ISA

    A word of warning on your savings ISA, if you set it up a few years ago check the interest rate you are paying as it's probably reduced significantly and you may want to shop around for a better rate.
    I'm a Chartered Financial Planner. Trying to be helpful without giving advice.
  • ValiantSon
    ValiantSon Posts: 2,586 Forumite
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    You would almost certainly be better off closing the cash ISA and moving the money to an easy access savings account and/or interest paying current accounts plus regular savers. Cash ISA rates are rubbish and the savings tax allowance negates the benefit of them for most people.

    I'd also consider moving your help to buy ISA to a LISA. The government bonus is better and it is more flexible.
  • lis-lou
    lis-lou Posts: 11 Forumite
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    Thanks for this. I have just had a look and it's just a Savings Account I have as well as the help to buy ISA rather than having two ISA's.
  • eskbanker
    eskbanker Posts: 31,066 Forumite
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    If you're able to save more than £200 per month and are looking to buy your first property, then, if your purchase will be more than a year away and you're under 40, you may be better off with a Lifetime ISA instead of the HTB, as you can save £4K per year in one of those....
  • lis-lou
    lis-lou Posts: 11 Forumite
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    Thank you for this. I have looked into a Lifetime ISA; although there aren't many places that are yet offering them unfortunately and I was a bit dubious about opening a lifetime ISA with someone that I had not heard of before. I won't be looking at buying for at least another 2 years, possibly a little longer than that and I am 33yrs old.

    QUOTE: If you're able to save more than £200 per month and are looking to buy your first property, then, if your purchase will be more than a year away and you're under 40, you may be better off with a
  • lis-lou
    lis-lou Posts: 11 Forumite
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    Thank you for this. I have looked into a Lifetime ISA; although there aren't many places that are yet offering them unfortunately and I was a bit dubious about opening a lifetime ISA with someone that I had not heard of before. I won't be looking at buying for at least another 2 years, possibly a little longer than that and I am 33yrs old
  • lis-lou
    lis-lou Posts: 11 Forumite
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    The LISA sounds better; although my partner already owns the flat he is in and will look at selling as we are saving to buy our first home together. Although I can open a LISA, and I know he can't, I believe the money from the LISA would only be able to be used if I was buying on my own rather than us buying together because it would be my first home but not his first home, which is that case it looks as though I am going to have to stick with the Help To Buy ISA.
  • badger09
    badger09 Posts: 11,211 Forumite
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    lis-lou wrote: »
    The LISA sounds better; although my partner already owns the flat he is in and will look at selling as we are saving to buy our first home together. Although I can open a LISA, and I know he can't, I believe the money from the LISA would only be able to be used if I was buying on my own rather than us buying together because it would be my first home but not his first home, which is that case it looks as though I am going to have to stick with the Help To Buy ISA.

    You believe wrongly. You can use the LISA when you buy your first home, whether on your own with someone else.
  • lis-lou
    lis-lou Posts: 11 Forumite
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    Thank you for this. I was having an online chat with someone from Skipton and they advised me that I wasn't able to do this.
  • badger09
    badger09 Posts: 11,211 Forumite
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    lis-lou wrote: »
    Thank you for this. I was having an online chat with someone from Skipton and they advised me that I wasn't able to do this.

    The person at Skipton is wrong

    I've lost the link to the main guidance but scroll down to 'Withdrawing for your first home'

    https://lifetimeisa.campaign.gov.uk/
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