H2B or wait for LISA?

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  • MallyGirl
    MallyGirl Posts: 6,626 Senior Ambassador
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    ValiantSon wrote: »
    As I suspect your daughter does not have sufficient savings or income outside of the JISA to worry about tax on savings then it could be just as well to deposit any money over the JISA allowance into a savings account, e.g. Santander 123 Mini (technically a current account) @ 3% on balances between £300 and £2000, or a regular saver, such as Halifax Kid's Regular Saver @ 4.5% on £100 p/m (effective annual rate = 2.42%). Obviously Halifax is a lower effective rate than Santander, but the interest is earned from the first £1, rather than having to wait until you hit £300.

    Halifax Kids regular saver is for under 16s
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  • ValiantSon
    ValiantSon Posts: 2,586 Forumite
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    Ed-1 wrote: »
    You can pay into a JISA and an adult cash ISA in the same year if you want to.

    Thanks, but can you pay into a JISA and an HTB ISA in the same year? You can't pay into a cash ISA and HTB ISA in the same year.
  • ValiantSon
    ValiantSon Posts: 2,586 Forumite
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    MallyGirl wrote: »
    Halifax Kids regular saver is for under 16s

    :doh: Missed that! Thanks for pointing my error out. :)

    Nationwide FlexOne Regular Saver would be the best alternative then (maximum age 17), paying 3.5% on £100 p/m (effective annual rate = 1.89%). At this point, however, I'd probably not bother and just use the 123 Mini.
  • Ed-1
    Ed-1 Posts: 3,892 Forumite
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    ValiantSon wrote: »
    Thanks, but can you pay into a JISA and an HTB ISA in the same year? You can't pay into a cash ISA and HTB ISA in the same year.

    A H2B ISA is an adult cash ISA.
  • ValiantSon
    ValiantSon Posts: 2,586 Forumite
    edited 21 February 2018 at 5:41PM
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    Ed-1 wrote: »
    A H2B ISA is an adult cash ISA.

    Hmmm. I'm not saying that you are wrong, but could you post a link to where this is confirmed, and that you can pay into both a JISA and a HTB ISA in the same year?
  • MallyGirl
    MallyGirl Posts: 6,626 Senior Ambassador
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    ValiantSon wrote: »
    Nationwide FlexOne Regular Saver would be the best alternative then (maximum age 17), paying 3.5% on £100 p/m (effective annual rate = 1.89%).

    This is actually quite a good one as you have to be under 18 to open it but can keep it going till age 23.

    Can you tell I have a 16 yr old?
    I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
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  • ValiantSon
    ValiantSon Posts: 2,586 Forumite
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    MallyGirl wrote: »
    This is actually quite a good one as you have to be under 18 to open it but can keep it going till age 23.

    Can you tell I have a 16 yr old?
    :)

    (Message is too short, so here is a sentence to make up for it).
  • Ed-1
    Ed-1 Posts: 3,892 Forumite
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    ValiantSon wrote: »
    Hmmm. I'm not saying that you are wrong, but could you post a link to where this is confirmed?

    The reason why you can't pay into both a H2B ISA and another cash ISA in the same year is because you can't pay into 2 cash ISAs in the same year.

    https://www.halifax.co.uk/isas/cash-isas/help-to-buy-isa/

    Remember, the Help to Buy: ISA is a cash ISA and you can only add contributions into one cash ISA in a tax year.
  • CricketLady
    CricketLady Posts: 43 Forumite
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    Oh my goodness, you've all been so kind, thank you so much!

    To answer some of the questions she has the following:
    8000 Nationwide 3.25% JISA
    2000 Santander Mini 123 3%
    1700 HSBC 2.75%
    3250 Nationwide 2.5% limited access
    1000 Halifax regular saver 4% (the maturity date is a week before her birthday so when she was a week off being 16 we were entitled to another year!)
    and 1800 in the Santander 5% regular saver (not many of the "adult" regular savers let them start at 16 but Santander do.) She funds her regular saver each month from her HSBC account hence it's down a bit.

    After the Child Trust Fund business (her little brother was entitled to it, she wasn't) I'm always a bit worried about the government "pulling the plug" on schemes that seem great to begin with, and wonder if the LISA might turn out to be one of them. Time will tell I suppose.

    After all my research today I think I will simply keep rolling her savings into her JISA and leave the LISA decision until next May (2019) when she will be 18.

    I've learned a lot today so thank you to everyone who has contributed!

    Cricketlady
  • CricketLady
    CricketLady Posts: 43 Forumite
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    On this page https://www.moneysavingexpert.com/savings/help-to-buy-ISA?_ga=2.17738236.432031731.1517755402-1384030422.1513203526

    it says "Can 16 & 17 year olds have a Help to Buy ISA and a Junior ISA at the same time?

    We checked this with HMRC and it told us that just as you can have a 'normal' cash ISA and a junior ISA at the same time if you're aged 16 or 17, the same applies with a Help to Buy ISA."

    but being a technophobe if this doesn't work simply go to the main website and then the Mortgages and Homes tab then "Help to buy ISAs" choice. Hope this is right, it's been a long day and I think I'm about to have dreams about ISAs!

    Best wishes, CricketLady
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