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  • FIRST POST
    • jools7890
    • By jools7890 9th Jun 17, 9:49 AM
    • 1Posts
    • 0Thanks
    jools7890
    What's the maximum that can be paid into Help to Buy & LISA in a year?
    • #1
    • 9th Jun 17, 9:49 AM
    What's the maximum that can be paid into Help to Buy & LISA in a year? 9th Jun 17 at 9:49 AM
    I want to open a LISA in this 2017-18 tax year but also want to keep my Help to Buy ISA going (and ideally not transfer it into a LISA) as it has a great 4% interest rate. What is the maximum that I can therefore pay into each of these accounts? I ideally want to put the max £200/month in the H2B and the £4k max into the LISA but I can't work out if this is possible or not.
Page 1
    • elephantrosie
    • By elephantrosie 9th Jun 17, 10:10 AM
    • 329 Posts
    • 83 Thanks
    elephantrosie
    • #2
    • 9th Jun 17, 10:10 AM
    • #2
    • 9th Jun 17, 10:10 AM
    4% H2B? i want to open one too. who you with?
    Getting bored of my 9 to 5 job.
    • bowlhead99
    • By bowlhead99 9th Jun 17, 10:26 AM
    • 6,501 Posts
    • 11,498 Thanks
    bowlhead99
    • #3
    • 9th Jun 17, 10:26 AM
    • #3
    • 9th Jun 17, 10:26 AM
    The max that can move into the LISA this year is £4k of 2017/18 money plus whatever was in the HTB ISA at 5/4/2017 (contributions from prior tax years and all accrued interest to that point).

    So you are welcome to keep using the HTB adding your £200pm for now, but if for example by next March 2018 you have added £2200 to the HTB and earned another (say) £150 of interest, when you transfer that amount into the LISA it will use up £2350 of your £4000 current year allowance. Because that's all "new money" saved or earned in 2017/8 and needs to come out of current year allowance. But the part of the HTB ISA which relates to contributions and interest prior to 5/4/17 will not affect the £4000 current year allowance.

    The most sensible thing to do is probably keep saving away in your HTB ISA and other high interest accounts until next Feb/March and then open up the best LISA you can find at that point (making sure you leave time to get the transfer from HTB to LISA complete before end of the tax year, because your want to be using up this year's allowance and not next year's.
    • Walker66
    • By Walker66 9th Jun 17, 11:31 AM
    • 2 Posts
    • 2 Thanks
    Walker66
    • #4
    • 9th Jun 17, 11:31 AM
    • #4
    • 9th Jun 17, 11:31 AM
    Has MSE seen the small print on the Skipton LISA page, which states that they reserve the right to withdraw the facility of putting your HISA into your LISA at any stage...?
    • Ed-1
    • By Ed-1 9th Jun 17, 11:54 AM
    • 1,906 Posts
    • 1,013 Thanks
    Ed-1
    • #5
    • 9th Jun 17, 11:54 AM
    • #5
    • 9th Jun 17, 11:54 AM
    4% H2B? i want to open one too. who you with?
    Originally posted by elephantrosie
    It'll be an old Santander H2B ISA. If you opened it before May 2016 it's still paying 4%.
    • Ed-1
    • By Ed-1 9th Jun 17, 11:55 AM
    • 1,906 Posts
    • 1,013 Thanks
    Ed-1
    • #6
    • 9th Jun 17, 11:55 AM
    • #6
    • 9th Jun 17, 11:55 AM
    I want to open a LISA in this 2017-18 tax year but also want to keep my Help to Buy ISA going (and ideally not transfer it into a LISA) as it has a great 4% interest rate. What is the maximum that I can therefore pay into each of these accounts? I ideally want to put the max £200/month in the H2B and the £4k max into the LISA but I can't work out if this is possible or not.
    Originally posted by jools7890
    If you have a decent chunk of savings then do what I plan to do:

    Transfer the balance of the H2B ISA as at 5th April 2017 into a LISA by April 2018 but keep 17/18 contributions in the H2B ISA.
    • elephantrosie
    • By elephantrosie 9th Jun 17, 10:59 PM
    • 329 Posts
    • 83 Thanks
    elephantrosie
    • #7
    • 9th Jun 17, 10:59 PM
    • #7
    • 9th Jun 17, 10:59 PM
    If you have a decent chunk of savings then do what I plan to do:

    Transfer the balance of the H2B ISA as at 5th April 2017 into a LISA by April 2018 but keep 17/18 contributions in the H2B ISA.
    Originally posted by Ed-1
    may i ask why?
    Getting bored of my 9 to 5 job.
    • Ed-1
    • By Ed-1 10th Jun 17, 9:53 AM
    • 1,906 Posts
    • 1,013 Thanks
    Ed-1
    • #8
    • 10th Jun 17, 9:53 AM
    • #8
    • 10th Jun 17, 9:53 AM
    may i ask why?
    Originally posted by elephantrosie
    So you can continue getting 4% on it! If you have enough to fill the £4k LISA allowance each year then you xan simply use the H2B ISA as a high interest regular savings account.
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