Help to Buy ISAs/Normal ISAs

R11_BFC

I'm looking to set up a Help to Buy ISA for my 18 year old daughter with me saving for her. I believe this is within the rules to do.

My question, is apparently you cant open a new ISA/pay into an existing ISA if you want to have a Help to Buy ISA.

What i'm unclear on though is what if my daughter wants to transfer her existing ISA to a new one with a better interest rate. Is that classified as a new ISA or because she has an existing ISA classified as old money and therefore would still be able to open a Help to Buy ISA?

Does that make any sense at all?!

jimjames

An old ISA does not count as a new one.

Transfers do not affect your annual limit.

HTB ISAs aren't available yet and may not be depending on election result.

R11_BFC

Cheers JJ.

MARTYM8`

The Help to buy isa comes in in 2015-16.

Any isas for 2014-15 or before are not affected by it - so if you have an existing 2014-15 or prior year isa you can transfer it without affecting eligibility for the help to buy isa.

Of course by the time anyone gets £3k funded by other taxpayers - 5 years time - prices will probably have been pushed up to more ridiculous heights by more silly government schemes so this £3k won't assist much.

jadeyb0623

Hi,

I have already got a cash ISA with HSBC just under £5k I am interested in getting the HTB ISA but I am wondering if I can transfer the money I've saved into the HTB ISA?
I know I will have to stop my DD going in to my cash ISA by 6th April so saying I did that I would still have a cash ISA but no money would be going into it, would I need to transfer the money into a different savings account or could it go into the HTB one?
From what I've read it looks like only £1000 can go in and then only £200 per month?
I'm not really sure what the best option is for me, if someone could help that would be great

jimjames

For £5k you can do far better than cash ISAs if your rate is under 5%.

Maybe fill those accounts first and then look at the HTB ISA once they are available but the amounts will be small in comparison to normal ISAs.

jadeyb0623

What would you suggest other than a cash ISA?

PeacefulWaters

Providers have been given no notice of Help To Buy ISA so haven't had time to build a product.

In an ideal world they should be able to turn any normal cash ISA into one that can qualify as Help To Buy. Hopefully a "Help To Buy Ready" mark can get put on a bog standard cash ISA so that savers can assess suitability.

Until then, I'd hang fire on opening an ISA in the 2015/16 tax year if I wanted a HTB friendly one.

jadeyb0623

Ok, so I have cancelled my direct debit to my cash ISA now. I think I am going to continue saving until the HTB ISA comes available by putting my savings into a flexi saver account that I have.

Thanks for your help

jimjames

jadeyb0623 wrote: »

Ok, so I have cancelled my direct debit to my cash ISA now. I think I am going to continue saving until the HTB ISA comes available by putting my savings into a flexi saver account that I have.

Thanks for your help

Did you read the post about 5% accounts? Does your saver account pay that much?

jadeyb0623

Yes I did read it, but only yesterday and think I am too late to switch now if I am holding out for the HTB. I just have a cash ISA with HSBC and couldn't find anywhere how much interest I get, I am pretty sure it's not that much though =/