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  • FIRST POST
    • nodoshleft
    • By nodoshleft 4th Jan 18, 10:15 PM
    • 1Posts
    • 0Thanks
    nodoshleft
    H2B into LISA
    • #1
    • 4th Jan 18, 10:15 PM
    H2B into LISA 4th Jan 18 at 10:15 PM
    Hi I have just opened a LISA with Skpton, if I transfer my previous years H2B contributions into this and leave my 2017/18 payments in my H2B ISA can I then put £4000 into my LISA and continue paying into my H2B to max out both for this year. I know I can only get the bonus on one.
Page 1
    • Ed-1
    • By Ed-1 4th Jan 18, 10:32 PM
    • 1,999 Posts
    • 1,113 Thanks
    Ed-1
    • #2
    • 4th Jan 18, 10:32 PM
    • #2
    • 4th Jan 18, 10:32 PM
    Hi I have just opened a LISA with Skpton, if I transfer my previous years H2B contributions into this and leave my 2017/18 payments in my H2B ISA can I then put £4000 into my LISA and continue paying into my H2B to max out both for this year. I know I can only get the bonus on one.
    Originally posted by nodoshleft
    Yes.......
    • where are we
    • By where are we 5th Jan 18, 11:30 AM
    • 181 Posts
    • 50 Thanks
    where are we
    • #3
    • 5th Jan 18, 11:30 AM
    • #3
    • 5th Jan 18, 11:30 AM
    I am helping one of my children do exactly this from a Halifax HTB ISA. We contacted the Halifax to confirm the pre 2017/2018 amount to enter into the Skipton transfer form and was given the balance at 5/4/17 including all annual interest payments. The last annual interest payment was in December 2016. I presume any interest earned between this date and 5/4/17 will not be included. Is this correct?
    I was also dismayed to be told by the Halifax representative that you could not contribute to a LISA and a HTB ISA in the same year ie 2017-2018, because he said you can contribute into only one cash ISA in a year. I told him he was incorrect but he insisted that he was not wrong.
    • jamesunisaver
    • By jamesunisaver 5th Jan 18, 12:12 PM
    • 5 Posts
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    jamesunisaver
    • #4
    • 5th Jan 18, 12:12 PM
    • #4
    • 5th Jan 18, 12:12 PM
    "The impact on your LISA allowance of transferring a Help to Buy ISA in depends on when you contributed. All money contributed to a Help to Buy ISA before LISAs launched (ie, before 6 April 2017) can be transferred in without affecting your LISA allowance Ė and you can get both the max £1,000 LISA bonus, plus the bonus on that Help to Buy ISA cash on top. Any money you contribute to the Help to Buy ISA after LISAs launch however will eat up your LISA allowance."

    The above paragraph was copied from Martin's page assisting with the technicalities of the Help to Buy Isa and Lifetime ISA.
    • Wagas
    • By Wagas 5th Jan 18, 1:13 PM
    • 10 Posts
    • 5 Thanks
    Wagas
    • #5
    • 5th Jan 18, 1:13 PM
    • #5
    • 5th Jan 18, 1:13 PM
    I am helping one of my children do exactly this from a Halifax HTB ISA. We contacted the Halifax to confirm the pre 2017/2018 amount to enter into the Skipton transfer form and was given the balance at 5/4/17 including all annual interest payments. The last annual interest payment was in December 2016. I presume any interest earned between this date and 5/4/17 will not be included. Is this correct?
    Originally posted by where are we
    This is what I am also presuming.

    I was also dismayed to be told by the Halifax representative that you could not contribute to a LISA and a HTB ISA in the same year ie 2017-2018, because he said you can contribute into only one cash ISA in a year. I told him he was incorrect but he insisted that he was not wrong.
    Originally posted by where are we
    I also think he is wrong as a LISA is not considered to be a cash ISA is it?
    • Owen1991
    • By Owen1991 5th Jan 18, 1:23 PM
    • 34 Posts
    • 51 Thanks
    Owen1991
    • #6
    • 5th Jan 18, 1:23 PM
    • #6
    • 5th Jan 18, 1:23 PM
    This is what I am also presuming.



    I also think he is wrong as a LISA is not considered to be a cash ISA is it?
    Originally posted by Wagas
    You can contribute to both, he is wrong.
    Save 12k in 2018 - £800/£12000 ~ # | Sealed Pot Challenge 2018 ~ #44
    £7000 in LISA | £8000 in Savings - End of 2017
    Debt Free | Saving for a House Deposit
    • Alexland
    • By Alexland 5th Jan 18, 7:19 PM
    • 1,118 Posts
    • 750 Thanks
    Alexland
    • #7
    • 5th Jan 18, 7:19 PM
    • #7
    • 5th Jan 18, 7:19 PM
    Halifax people are not trained to understand products they don't sell so should avoid commenting really.
    • eskbanker
    • By eskbanker 5th Jan 18, 7:21 PM
    • 6,082 Posts
    • 6,107 Thanks
    eskbanker
    • #8
    • 5th Jan 18, 7:21 PM
    • #8
    • 5th Jan 18, 7:21 PM
    I am helping one of my children do exactly this from a Halifax HTB ISA. We contacted the Halifax to confirm the pre 2017/2018 amount to enter into the Skipton transfer form and was given the balance at 5/4/17 including all annual interest payments. The last annual interest payment was in December 2016. I presume any interest earned between this date and 5/4/17 will not be included. Is this correct?
    Originally posted by where are we
    This is what I am also presuming.
    Originally posted by Wagas
    Interest earned but not paid into the HTB as at 5 April 2017 should also be included in the pre-2017/18 amount that doesn't count towards the £4K LISA limit for 2017/18, according to the Treasury letter of 18 April 2017 clarifying this:
    The amount that can be transferred from a Help to Buy: ISA to a Lifetime LISA in the 201718 tax year without being treated as a contribution to the Lifetime ISA is the value in the Help to Buy: ISA account as at 5 April 2017 plus any interest that has accrued on that amount, but not yet been paid into the Help to Buy: ISA account, as at 5 April 2017.
    So, on the face of it Halifax aren't using the correct calculation, but convincing them of this may not be straightforward - if you feel strongly enough about the principle then try directing them towards that letter and see what they say....
    • where are we
    • By where are we 6th Jan 18, 8:27 PM
    • 181 Posts
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    where are we
    • #9
    • 6th Jan 18, 8:27 PM
    • #9
    • 6th Jan 18, 8:27 PM
    It is not worth the trouble to try to get Halifax to calculate the interest earned on the HTB ISA between the last interest payment in December 2016 and 5/4/17 (roughly £35) and persuade them to add that to the balance at 5/4/17 (£4284) that they have already quoted.
    My daughter still plans to contribute £4000 to the Skipton Lisa this tax year in addition to the £4284 transferred from her HTB ISA and continue contributing £200 a month to the Halifax HTB ISA because it pays 3.5% interest. She will thus contribute £2400 to her HTB ISA this tax year, £4000 new cash to her LISA (plus the £4284 transfer) and be well within her £20,000 annual ISA limit. Is this OK?
    • New_Money_Saver
    • By New_Money_Saver 6th Jan 18, 11:18 PM
    • 2 Posts
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    New_Money_Saver
    I am interested in opening the Skipton cash LISA to "start the clock running" so to speak. I currently have several ISAs with my bank (HSBC): a H2B, a stocks and shares and an older cash ISA. I have already contributed to the H2B and stocks and shares ISAs this tax year. Can I still open the LISA? If so can I do it with £1 cash or would I need to do a balance transfer from one of my other ISAs? I was reading the article and the posts above and am a bit unclear as to whether the LISA is considered a cash ISA. i.e. can I contribute to a cash, a LISA and a stocks and shares all within the same year?

    I am not sure whether to move the H2B into the LISA or not. The base interest rate is better on the H2B and I don't know for definite that I'll be spending the money on a first home, but if I do it will likely be more expensive than the 250k limit for H2B. What is the general consensus on this?

    Thanks
    • New_Money_Saver
    • By New_Money_Saver 6th Jan 18, 11:23 PM
    • 2 Posts
    • 0 Thanks
    New_Money_Saver
    Additional query: if the government bonus is paid into the LISA yearly, does that mean it then begins to attract the base-rate interest in year 2?
    • eskbanker
    • By eskbanker 7th Jan 18, 12:13 AM
    • 6,082 Posts
    • 6,107 Thanks
    eskbanker
    I am interested in opening the Skipton cash LISA to "start the clock running" so to speak. I currently have several ISAs with my bank (HSBC): a H2B, a stocks and shares and an older cash ISA. I have already contributed to the H2B and stocks and shares ISAs this tax year. Can I still open the LISA?
    Originally posted by New_Money_Saver
    Yes.

    If so can I do it with £1 cash or would I need to do a balance transfer from one of my other ISAs?
    Originally posted by New_Money_Saver
    You can do either.

    I was reading the article and the posts above and am a bit unclear as to whether the LISA is considered a cash ISA. i.e. can I contribute to a cash, a LISA and a stocks and shares all within the same year?
    Originally posted by New_Money_Saver
    LISAs are a separate type so you can contribute to the three you list.

    I am not sure whether to move the H2B into the LISA or not. The base interest rate is better on the H2B and I don't know for definite that I'll be spending the money on a first home, but if I do it will likely be more expensive than the 250k limit for H2B. What is the general consensus on this?
    Originally posted by New_Money_Saver
    The big plus of the LISA is the higher annual limit, so you can get a 25% bonus on £4K/year, which will typically outweigh the higher interest on less capital in a HTB. Plus the property value cap variation you refer to.

    Additional query: if the government bonus is paid into the LISA yearly, does that mean it then begins to attract the base-rate interest in year 2?
    Originally posted by New_Money_Saver
    Yes, but the bonus is only paid yearly this tax year, after that it's monthly.
    • throwaway12345
    • By throwaway12345 7th Jan 18, 5:20 PM
    • 3 Posts
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    throwaway12345
    I'm sorry for what's probably a stupid question, but what's the benefit to keeping the Help to Buy ISA? Getting the 25% bonus on the £4k you put each year into the LISA but then also getting 3.5% (currently) on the £200/month you put into the Help to Buy ISA (even though you'll get no bonus on that money)?
    • where are we
    • By where are we 7th Jan 18, 7:06 PM
    • 181 Posts
    • 50 Thanks
    where are we
    The benefit of keeping the Halifax HTB ISA is its 3.5% interest rate (if you started one back in December 2015) which is much better than 1.15% which is the best cash ISA rate at the moment. The Halifax HTB ISA allows unlimited withdrawals and can be closed at any time and you get your capital + interest - you don`t need to purchase a house. However you can`t contribute to a cash ISA and a HTB ISA in the same tax year unless your provider allows "Split ISA`s". Instead of cash ISA`s you can have much better interest rates with current accounts and regular savers all covered by the £1000 personal saving allowance so no tax to pay on the interest.
    So my daughter will use her Skipton LISA on house purchase to qualify for the 25% government bonus and close the Halifax HTB ISA (with savings from 6/4/17) just before this date because she will then have become a home owner and won`t be a first time buyer any more.
    • Largoh
    • By Largoh 8th Jan 18, 6:45 AM
    • 8 Posts
    • 2 Thanks
    Largoh
    I’m in the same boat; roughly.

    I’ve got a Halifax H2B ISA at 3.5% interest rate. The house I’m planning on buying will be available in 2019, so I need to accelerate my savings but I can’t do that with the H2B and the interest rate is too good to give up.

    If I was to open a LISA, would my best option be to stop paying in to the H2B (I assume I can’t pay in to both) but leave the money there and give up on the bonus, then start paying in to the LISA instead?

    Of course I need to figure out which I can get the most bonus from as we’re probably looking at around 12 to 18 months until I need to use the savings, so that’s a max of £1000 from the LISA if I don’t transfer the H2B over.

    I should add that there’s a possibility that the house I’ve put my name down on has a chance of being over £250k. The ones built so far are less, but the one I’ve gone for is slightly different plus it will be next year so I’d assume prices would increase.

    Argh! It seems we’re on the edge. I have no idea what to do.
    Last edited by Largoh; 08-01-2018 at 6:58 AM.
    • AlphaSatsuma
    • By AlphaSatsuma 8th Jan 18, 3:02 PM
    • 11 Posts
    • 227 Thanks
    AlphaSatsuma
    Your best option would be to transfer the H2B in a LISA and get the bonus on both assuming you have enough to maximise the higher contribution limit (4k)
    • AlphaSatsuma
    • By AlphaSatsuma 8th Jan 18, 3:09 PM
    • 11 Posts
    • 227 Thanks
    AlphaSatsuma
    I'm in an bit of a strange (stupid) situation, hopefully someone knows some of the technicalities to help me.

    I have had a H2B since 2015 with Halifax and have maxed that out every month since opening.
    When LISAs came along I read about the year wait thing before being able to use, so I opened a Nutmeg LISA with the minimum £100 thinking I could transfer my H2B in in April this year and get the bonus on it all in S&S. However I've just noticed that nutmeg for some reason are not allowing transfers.
    I'm now looking to open a Skipton cash LISA so that I can transfer H2B in before April and get the extra bonus. However I don't know if I can transfer my Nutmeg LISA first to keep my original opening date and allow me to use sooner, if required? Or do I need to close the nutmeg one before the anniversary so I don't get charged and just open a new LISA and accept it?
    Any ideas? Thanks in advance
    • Ed-1
    • By Ed-1 8th Jan 18, 4:31 PM
    • 1,999 Posts
    • 1,113 Thanks
    Ed-1
    Iím in the same boat; roughly.

    Iíve got a Halifax H2B ISA at 3.5% interest rate. The house Iím planning on buying will be available in 2019, so I need to accelerate my savings but I canít do that with the H2B and the interest rate is too good to give up.

    If I was to open a LISA, would my best option be to stop paying in to the H2B (I assume I canít pay in to both) but leave the money there and give up on the bonus, then start paying in to the LISA instead?

    Of course I need to figure out which I can get the most bonus from as weíre probably looking at around 12 to 18 months until I need to use the savings, so thatís a max of £1000 from the LISA if I donít transfer the H2B over.

    I should add that thereís a possibility that the house Iíve put my name down on has a chance of being over £250k. The ones built so far are less, but the one Iíve gone for is slightly different plus it will be next year so Iíd assume prices would increase.

    Argh! It seems weíre on the edge. I have no idea what to do.
    Originally posted by Largoh
    You can pay into both a H2B (cash) ISA and a Lifetime ISA.

    If you want to keep the H2B for the interest rate, then you can transfer part of it into a LISA. Anything paid into the H2B ISA up to 5th April 2017 can be transferred into a LISA on top of the £4k you're allowed to pay into a LISA in 2017/18.
    • DanielleJH
    • By DanielleJH 8th Jan 18, 9:34 PM
    • 7 Posts
    • 0 Thanks
    DanielleJH
    Hoping someone can help clarify the LISA for me. My husband and I are both first time buyers who have held LISAs since September 2016. Am I definitely right in thinking we're entitled to £4000 each per tax year?

    We are hoping to buy in January 2019 so will have held the accounts over two tax years. Does this mean we are able to save a maximum of £16000 between us with a maximum bonus of £4000 before April next year? We only have a few £100 each in them so far but are due bonuses in work before the end of April so hoping to get as close to £4000 each as possible.
    • DanielleJH
    • By DanielleJH 8th Jan 18, 9:36 PM
    • 7 Posts
    • 0 Thanks
    DanielleJH
    Sorry ignore me, I meant to post this in the normal LISA threads stupid phone!
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