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  • FIRST POST
    • Former MSE Sam M
    • By Former MSE Sam M 1st Dec 15, 3:23 PM
    • 238Posts
    • 159Thanks
    Former MSE Sam M
    Help to Buy ISA guide
    • #1
    • 1st Dec 15, 3:23 PM
    Help to Buy ISA guide 1st Dec 15 at 3:23 PM

    Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
Page 2
    • MARTYM8`
    • By MARTYM8` 1st Dec 15, 7:38 PM
    • 1,197 Posts
    • 854 Thanks
    MARTYM8`
    It says you can only contribute to one cash isa in a tax year, does this mean that this will be the only cash isa you can out money in for as long as you have it. For example if I deposit £200 into a help to buy isa every month for 5 years i wont be able to put money into any other cash isa in those 5 years? therefore i would lose out on a lot of tax free eligible savings.
    Originally posted by riccirus
    Yes - if your HTB isa is with Halifax or Virgin or Barclays or most providers at present.

    However this does not apply with Nationwide, RBS/Natwest, Aldermore or Newcastle as you can invest in both a cash isa and a HTB isa each tax year under their split isa arrangements.

    Why they cannot all introduce this option is a loss to me.

    You may of course earn more in a current account or regular saver than a cash isa - so look at your options.

    What annoys me is when certain providers include this statement in their terms - yes you can just not with THEM! Its wrong.

    "You can't pay into a Help to Buy: ISA and a Cash ISA in the same tax year"
    Last edited by MARTYM8`; 01-12-2015 at 7:43 PM.
    • jimjames
    • By jimjames 1st Dec 15, 7:39 PM
    • 12,183 Posts
    • 10,699 Thanks
    jimjames
    therefore i would lose out on a lot of tax free eligible savings.
    Originally posted by riccirus
    Yes but that's doing you a favour. Not point chasing an account because it's tax free yet pays a tiny rate in comparison to a taxed account especially after the rules change next year.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Purplepennies
    • By Purplepennies 1st Dec 15, 7:43 PM
    • 1 Posts
    • 1 Thanks
    Purplepennies
    Have I understood this correctly?

    I am aware that I cannot have a Cash ISA and a HTB-ISA in the same tax year (yes I know that the Nationwide are doing a split ISA but that aside).
    I have paid about £3000 into a cash ISA this tax year. If I withdraw that £3000 from the account so that I no longer have a current tax year's cash ISA and do not pay any more into that account does this then qualify me to open a HTB ISA?
    Originally posted by MJD

    I am in a similar situation where my partner and I pay monthly into my isa, does this mean we both we would have to get split ISA S? It's still a little confusing.
    • MissC84
    • By MissC84 1st Dec 15, 7:54 PM
    • 1 Posts
    • 0 Thanks
    MissC84
    I currently save £1000pcm and am hoping this will go up to about £1200 a month in February next year. I'm looking at starting the house buying process in March 2016. I want to open a Help to Buy ISA for the £200pcm but am unsure where to save the other £800pcm. It's currently all just in a normal savings account so literally get pence in interest.
    Should I get the Nationwide split ISA and where should I save the rest?
    Any advice much appreciated thank you
    • fever84
    • By fever84 1st Dec 15, 8:29 PM
    • 1 Posts
    • 1 Thanks
    fever84
    I went into nationwide today and opened a 2% help to buy isa and a 1.4% cash isa. Feel feel to ask any questions. This was the best choice for me because I already had a lot of savings in a low interest isa

    I opened the the help to buy isa with £1 which I have till the end of December to transfer up to £1199 and I closed my old cash isa and transferred it into the new cash ISA
    Last edited by fever84; 01-12-2015 at 8:34 PM.
    • colsten
    • By colsten 1st Dec 15, 8:30 PM
    • 8,788 Posts
    • 7,466 Thanks
    colsten
    I currently save £1000pcm and am hoping this will go up to about £1200 a month in February next year. I'm looking at starting the house buying process in March 2016. I want to open a Help to Buy ISA for the £200pcm but am unsure where to save the other £800pcm. It's currently all just in a normal savings account so literally get pence in interest.
    Should I get the Nationwide split ISA and where should I save the rest?
    Any advice much appreciated thank you
    Originally posted by MissC84
    Unless you don't care about the interest you can earn, the last place to put any of your money would be a non-HTB cash ISA. Check out the various interest paying current accounts, as well as the monthly savers which offer flexible withdrawals, such as the 5% ones offered by Nationwide and TSB etc.
    • colsten
    • By colsten 1st Dec 15, 8:36 PM
    • 8,788 Posts
    • 7,466 Thanks
    colsten
    It says you can only contribute to one cash isa in a tax year, does this mean that this will be the only cash isa you can out money in for as long as you have it. For example if I deposit £200 into a help to buy isa every month for 5 years i wont be able to put money into any other cash isa in those 5 years? therefore i would lose out on a lot of tax free eligible savings.
    Originally posted by riccirus
    Why would you want to put any money into a non-HTB cash ISA when you can get between 3 and 6% in non-ISA accounts? Even if you had to pay tax on them, they are likely to beat those ISAs by a mile. And from April 2016, there's a good chance you won't have to pay any tax on any of them, unless you earn more than £1,000 interest a year (£500 if you are a HR tax payer, nil if you are on Advanced Rtae).
    • kelbel908
    • By kelbel908 1st Dec 15, 8:53 PM
    • 1 Posts
    • 1 Thanks
    kelbel908
    Can someone help me please, if I go for the halifax htb isa that is offering 4% but buy a house in less than a year do I loose out on earning 4% tax free because this is paid annually?
    • Aj28
    • By Aj28 1st Dec 15, 8:55 PM
    • 2 Posts
    • 0 Thanks
    Aj28
    Help Please...
    Hi,

    So after having read & watched as much as I can on this I am still confused...

    I currently have not opened an ISA this tax year, yet have money in an old one (anticipating the HTB -ISA). With this amount I am unsure what to do...

    From what I can make out it would be best to open a split HTB-ISA (e.g. - Nationwide) and any extra over the £200/pm I can save would first go into topping my allowance up and then into a regular saver of some sort?

    Please if anyone can help it would be much appreciated.
    • Essex2014
    • By Essex2014 1st Dec 15, 9:01 PM
    • 6 Posts
    • 0 Thanks
    Essex2014
    I transferred my cash ISA provider this year. I think i'm not eligible for HTD ISA this tax year?
    • jimjames
    • By jimjames 1st Dec 15, 9:05 PM
    • 12,183 Posts
    • 10,699 Thanks
    jimjames
    Hi,

    So after having read & watched as much as I can on this I am still confused...

    I currently have not opened an ISA this tax year, yet have money in an old one (anticipating the HTB -ISA). With this amount I am unsure what to do...

    From what I can make out it would be best to open a split HTB-ISA (e.g. - Nationwide) and any extra over the £200/pm I can save would first go into topping my allowance up and then into a regular saver of some sort?

    Please if anyone can help it would be much appreciated.
    Originally posted by Aj28
    Not sure which bits you've been reading but I can't see any reason why you'd want to have a split ISA with any part in a non HTB ISA when you can get such vastly better rates elsewhere.

    Any extra over the £200 HTB amount can then just go into the non ISA account paying 5%.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • jimjames
    • By jimjames 1st Dec 15, 9:06 PM
    • 12,183 Posts
    • 10,699 Thanks
    jimjames
    I am in a similar situation where my partner and I pay monthly into my isa, does this mean we both we would have to get split ISA S? It's still a little confusing.
    Originally posted by Purplepennies
    ISAs are individual savings account so you have to have one each and can't split one between you.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Aj28
    • By Aj28 1st Dec 15, 9:12 PM
    • 2 Posts
    • 0 Thanks
    Aj28
    Thanks.

    1) So I should open a HTB at the highest rate with £1200 and then continue with £200/month until in a position to buy...

    2) However doing this with say, Halifax I am unable to further save Tax free until April?

    3) And any other savings I have should go into a high interest bank account which is taxed?
    • colsten
    • By colsten 1st Dec 15, 9:26 PM
    • 8,788 Posts
    • 7,466 Thanks
    colsten
    1) So I should open a HTB at the highest rate with £1200 and then continue with £200/month until in a position to buy...
    Originally posted by Aj28
    yep

    2) However doing this with say, Halifax I am unable to further save Tax free until April?
    Originally posted by Aj28
    they are right but it doesn't matter, ignore them. Tax free savings aren't so desireable outside an HTB ISA anyway

    3) And any other savings I have should go into a high interest bank account which is taxed?
    Originally posted by Aj28
    yep. But remember, from April 2016 onwards, you have a £1,000 savings interest allowance as a BR tax payer, and £500 as a higher rate tax payer.
    • colsten
    • By colsten 1st Dec 15, 9:29 PM
    • 8,788 Posts
    • 7,466 Thanks
    colsten
    Can someone help me please, if I go for the halifax htb isa that is offering 4% but buy a house in less than a year do I loose out on earning 4% tax free because this is paid annually?
    Originally posted by kelbel908
    You will get interest for each and every day you had money in the account. The stadard payment date is not relevant to how much interest they owe you, and they'll pay what they owe when you close your account.
    • lukie-jay
    • By lukie-jay 1st Dec 15, 9:44 PM
    • 2 Posts
    • 0 Thanks
    lukie-jay
    I'm tempted to run to the bank and set up an ISA now but would the best deals be coming after Christmas when people start thinking more about buying a house?
    • jimjames
    • By jimjames 1st Dec 15, 9:53 PM
    • 12,183 Posts
    • 10,699 Thanks
    jimjames
    I'm tempted to run to the bank and set up an ISA now but would the best deals be coming after Christmas when people start thinking more about buying a house?
    Originally posted by lukie-jay
    If you think you'll wait to get much better than 4% then I think you'll be waiting a very, very long time.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Johno85
    • By Johno85 1st Dec 15, 9:59 PM
    • 1 Posts
    • 1 Thanks
    Johno85
    Hi all, I like to think I'm clever enough to understand all this but I'm still a bit stumped. If anyone could simplify what I should do I would be really grateful.


    I opened a cash ISA with my bank (HSBC) in January 2015 (Tax year 2014-2015)
    Since January 2015 I have paid just over £6000 into the ISA
    I understand that I can open a HTB ISA as I've not opened a cash ISA this tax year
    I have however paid into a cash ISA this tax year (2015-2016)


    Does this mean that I need to have a split HTB ISA & Cash ISA
    Or can I transfer the initial £1200 into a newly opened HTB ISA for the first month and keep the rest of the money in my current cash ISA (or transfer to an ISA with a better rate)?


    I hope this makes sense!!! Many thanks in advance
    • colsten
    • By colsten 1st Dec 15, 10:43 PM
    • 8,788 Posts
    • 7,466 Thanks
    colsten
    Since January 2015 I have paid just over £6000 into the ISA
    Originally posted by Johno85
    why oh why. But what's done is done.


    I understand that I can open a HTB ISA as I've not opened a cash ISA this tax year
    I have however paid into a cash ISA this tax year (2015-2016)
    Originally posted by Johno85
    the opening date is totally irrelevant. what counts is what you paid in (subscribed to) in the current tax year.


    Does this mean that I need to have a split HTB ISA & Cash ISA
    Originally posted by Johno85
    that might be the easiest for you in the situation you are in


    Or can I transfer the initial £1200 into a newly opened HTB ISA for the first month and keep the rest of the money in my current cash ISA (or transfer to an ISA with a better rate)?
    Originally posted by Johno85
    nope you can't. There might be some other option - look for the discussion on "self repair" - but I fear this might be too complicated and you might be best going for that split ISA for now. You could then correct the situation in the new tax year by stopping any further subscription to the non-HTB ISA, putting your spare cash into one or more of the best interest paying accounts, and transferring your HTB ISA to whoever offers the best interest rate next April.
    • DHarrison
    • By DHarrison 1st Dec 15, 11:02 PM
    • 1 Posts
    • 2 Thanks
    DHarrison
    Hi, regarding the issue of not being able to get the bonus if you rent out the property. I am currently not planning to rent out the house which I buy with the HTB ISA but because of work I may have to move and would probably rent out the property and rent somewhere else closer to my new place of work.
    How does the HTB ISA work in this case? Is there a minimum period before you can rent out the property? Would it be expected to pay back the bonus somehow?
    Thanks in advance.
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