Help to buy & save to buy ISA's

s.gill_2

I'm having difficulty in understanding these two, are you able to set up a help to buy ISA as well as creating a save to buy ISA and being able to contribute to both?

eskbanker

Generally you can't pay into multiple cash ISAs in the same tax year, but since Nationwide allow this you can indeed pay in to both a Save To Buy ISA (as a Nationwide product) and a Nationwide Help To Buy one once they've launched next month.

stator

With Nationwide the Help To Buy ISA is a wrapper product, not a product on it's own.
If you have any other ISA account with Nationwide you can make it into a Help to Buy ISA by asking them to 'upgrade' it.
If you don't have an ISA with them you can take out one account that is both Save to Buy and Help to Buy.

Juliemc_2

I'm going abroad to work for a year , what's the best way to keep my savings safe ?

AndyT678

Juliemc wrote: »

I'm going abroad to work for a year , what's the best way to keep my savings safe ?

Safe from what?

Safe from being nicked? - Put them in a bank.

Safe from inflation risk? - Find a bank that pays interest > inflation.

Safe from shortfall risk? - Dunno, depends what you're planning to buy with your savings.

Safe from bank insolvency? - Keep all your deposits below the FSCS compensation level of £75,000.

Safe from yourself and drunken overseas binge spending? - Put them in an account that you can't access quickly / remotely.

Safe from your evil twin impersonating you? - Tricky one that. Just keep all your personal documents safe really.

Safe in the event of the zombie apocalypse? - Convert cash to tinned beans / tuna now.

eskbanker

stator wrote: »

With Nationwide the Help To Buy ISA is a wrapper product, not a product on it's own.
If you have any other ISA account with Nationwide you can make it into a Help to Buy ISA by asking them to 'upgrade' it.
If you don't have an ISA with them you can take out one account that is both Save to Buy and Help to Buy.

http://www.nationwide.co.uk/support/support-articles/important-information/help-to-buy-isa states that HTB will be a separate product (once launched), which can be under the same wrapper as other Nationwide cash ISAs. Since HTB has tightly restricted contribution levels, I don't see how HTB could be the wrapper itself - it can be one of the constituent accounts under the wrapper but that's different....

MARTYM8`

eskbanker wrote: »

http://www.nationwide.co.uk/support/support-articles/important-information/help-to-buy-isa states that HTB will be a separate product (once launched), which can be under the same wrapper as other Nationwide cash ISAs. Since HTB has tightly restricted contribution levels, I don't see how HTB could be the wrapper itself - it can be one of the constituent accounts under the wrapper but that's different....

The Government has made clear that you can only invest in a cash ISA or a help to buy ISA but not both each year. I assumed this prevented you paying into both - even with Nationwide - as the help to buy ISA offers a more generous payout funded by the government?

Nothing to stop you combining a save to buy ISA – which pays 2% interest providing you pay in £50 a month – with another Nationwide cash ISA (e.g. flexclusive) and pay into both. But I find it very odd that Nationwide is allowing you to invest in both a save to buy ISA/other cash ISA for 2016-17 as well as a help to buy ISA with them – as its against HM Treasury’s rules isn’t it? Or maybe I am wrong?


https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/413899/Help_to_Buy_ISA_Guidance.pdf

eskbanker

MARTYM8` wrote: »

The Government has made clear that you can only invest in a cash ISA or a help to buy ISA but not both each year. I assumed this prevented you paying into both - even with Nationwide - as the help to buy ISA offers a more generous payout funded by the government?

Nothing to stop you combining a save to buy ISA – which pays 2% interest providing you pay in £50 a month – with another Nationwide cash ISA (e.g. flexclusive) and pay into both. But I find it very odd that Nationwide is allowing you to invest in both a save to buy ISA/other cash ISA for 2016-17 as well as a help to buy ISA with them – as its against HM Treasury’s rules isn’t it? Or maybe I am wrong?


https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/413899/Help_to_Buy_ISA_Guidance.pdf

Section 3.9 of that document is fairly carefully worded and refers to multiple providers rather than multiple accounts:

As is currently the case, it will only be possible for a saver to subscribe to one cash ISA per year. It will therefore not be possible for an account holder to subscribe to a Help to Buy: ISA with one provider, and another cash ISA with a different provider