When are you transferring your HTB cash ISA over to a cash LISA?
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JustAnotherSaver
Posts: 6,709 Forumite
If you're not doing this then obviously this thread is not for you & i'm sure there'll be other threads around here that interest you 
But there'll be some reading this who have money in a cash HTB ISA & who will be transferring this to a cash LISA before the end of the tax year.
Just wondering when those people are planning on doing that (for those who haven't yet done it)? January? February? early March?
My brother & sister are in such a position. They've just opened the Skipton cash LISA, they've sent off their transfer forms to transfer over their S&S LISA deposits from Hargreaves Lansdown to Skipton
They currently have their HTB ISAs with Halifax sitting at 3.5%, considerably more than Skipton's cash LISA.
Just wondering whether March is leaving it too late or not. There's a £200 deposit due to go in 1st March so the idea was to send off the transfer form 2nd March.
Whether it will all be finalised before the end of the tax year or not is another question & therefore may be better done 2nd February instead?
But there'll be some reading this who have money in a cash HTB ISA & who will be transferring this to a cash LISA before the end of the tax year.
Just wondering when those people are planning on doing that (for those who haven't yet done it)? January? February? early March?
My brother & sister are in such a position. They've just opened the Skipton cash LISA, they've sent off their transfer forms to transfer over their S&S LISA deposits from Hargreaves Lansdown to Skipton
They currently have their HTB ISAs with Halifax sitting at 3.5%, considerably more than Skipton's cash LISA.
Just wondering whether March is leaving it too late or not. There's a £200 deposit due to go in 1st March so the idea was to send off the transfer form 2nd March.
Whether it will all be finalised before the end of the tax year or not is another question & therefore may be better done 2nd February instead?
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Comments
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According to this post in the main LISA thread, Skipton are imposing a deadline of 1st March, so 2nd would indeed be too late:JustAnotherSaver wrote: »Just wondering whether March is leaving it too late or not. There's a £200 deposit due to go in 1st March so the idea was to send off the transfer form 2nd March.If you’re thinking about transferring an existing Help to Buy ISA or other ISA into your Skipton Cash Lifetime ISA in this tax year, our window to do so closes on 1 March 2018. After this date, you will no longer be able to apply to transfer into your Skipton Cash Lifetime ISA in the 2017/18 tax year.0 -
Suggest it's not worth trying to be too clever and ending up with a problem if there are unexpected delays (validating your identity, money laundering checks, etc). There's only around 3 months left this tax year so if you plan to do it - just get it done asap.
I am feeling advance sympathy for Skipton staff for how overloaded they might get this year end from people either trying to be smart or leaving it to the last minute.0 -
Yeah good call i suppose.Suggest it's not worth trying to be too clever and ending up with a problem if there are unexpected delays (validating your identity, money laundering checks, etc). There's only around 3 months left this tax year so if you plan to do it - just get it done asap.
I am feeling advance sympathy for Skipton staff for how overloaded they might get this year end from people either trying to be smart or leaving it to the last minute.
I don't really like sending any post off around this time of year as ok post can go missing at any time but this time of year is prime time, though i don't know how far in to Jan or even Feb things settle down?
With that said, there probably isn't going to be a vast amount of interest lost between now and April?
Take the biggest of the 2 accounts as an example as it'll be the one with most interest lost...
Current balance: £5,422.52
Due to be deposited between now and end of tax year: £800 (£200pm on the 1st of each month)
Interest rate: 3.50%
Interest rate at Skipton: 0.50%.
He just had an interest payment on 1st December on a balance of £5,082.76 of £139.76
So i'm guessing not much interest to be lost so may as well get the form sent off as soon as the S&S LISA transfer is finalised.0 -
Yeah it's not much to gain for the risk of delays causing it not to happen. Get it done then use your time to think about the next thing...0
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Unfortunately the S&S LISA has to be transferred over from HL first before a cash HTB ISA can be transferred i think? Or have i misunderstood that? I thought it needed to be transferred first before new money is deposited?
Must be about 3 weeks now. They're moving along ... slowly but they are moving.0 -
The HL LISA would have accepted transfers-in of HTB ISAs which would go into the S&S LISA as uninvested cash:
http://www.hl.co.uk/investment-services/lifetime-isa/transferring
However if there is already a LISA transfer in progress from HL to Skipton then I would let that complete (chasing both if it takes too long) before initiating the HTB transfer with Skipton as early as possible before 1st March.0 -
There was a £50 (2x £25) charge to transfer the HL LISA to Skipton.
Harsh but rules are rules i guess.0 -
When the FCA were asking for public input into the scope of their upcoming platform study I did write to them to raise the issue of exit fees and how they may be harming competition. It would not be acceptable for a current account or credit card to have an exit fee so why is it ok for an investment account?0
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I may open one soon - just to ask whether there's any reason I couldn't open a Lifetime ISA now with AJ Bell with about £1400, then part-transfer my H2B ISA over (leaving a few hundred in there), and then continue paying into my H2B ISA each month? And, next tax year, pay into both?
There's so much complexity with it all, just wanted to check in case I've missed something...0 -
Nothing to stop you paying into a LISA and an HTB in parallel but do bear in mind that when buying a first property you can only receive the 25% government bonus on either the LISA or the HTB but not both. Those who fully utilise their £4K annual LISA allowance may still find an HTB ISA a useful account purely for its relatively decent interest rate though....I may open one soon - just to ask whether there's any reason I couldn't open a Lifetime ISA now with AJ Bell with about £1400, then part-transfer my H2B ISA over (leaving a few hundred in there), and then continue paying into my H2B ISA each month? And, next tax year, pay into both?
There's so much complexity with it all, just wanted to check in case I've missed something...0
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