Help to Buy ISA - No Monthly Limit??

colsten

tain wrote: »

T&Cs for a product that doesn't exist yet? Where are they? I'll happily give them a look.

T&Cs for HTB ISAs are to a very large extent determined by the law. ISA providers are not free to determine the maximum monthly deposits - the law determines those. Have you actually read any of the FAQs I linked to earlier?

_CC_

I'm not sure if you're trolling or not, but to be clear this is what it says on the Virgin site:

• There is no minimum monthly deposit required.
• In the first month you deposit in your Help to Buy: ISA you can save up to £1,200. After that the maximum you can save is £200 per calendar month.
• Beyond the monthly limits, there is no maximum amount you can save in your Help to Buy: ISA, but the maximum bonus you can earn is £3,000.
• The minimum amount you need to save in the ISA to qualify for the 25% bonus is £1,600 (which gives you a bonus of £400).

It is very clear.

You can save a maximum of £200 per month into the HTB ISA (apart from the first month where there's the higher limit of £1,200). There is no minimum funding per month.

There is no limit on how much you can save within the HTB ISA, but the maximum bonus you can receive is £3,000 and you can only get the 25% bonus once you've saved £1,600.

You cannot open a cash ISA at the same time as having the HTB ISA. This is probably the reason behind having no overall limit on the amount you can accrue - people will primarily be using this savings wrapper for where they save for a deposit. People will still get tax free interest from the bank on their savings within the HTB ISA.

Hope this helps!

eskbanker

tain wrote: »

eskbanker wrote: »

No, the monthly limit of £200 into an HTB ISA is the same for all providers.

Nationwide's difference from the rest is that they offer subscribers the option of multiple concurrent cash ISAs in any tax year, which they've done for a number of years, independently of the new HTB scheme. So, an HTB ISA holder with Nationwide can have another cash ISA with Nationwide but would still be subject to the same monthly limit of £200 (except first month) in their implementation of the HTB one.

That's not what the Virgin Money quote says though is it. If that's what they meant, then why wouldn't they say that?


If it was the same £200 limit, then they would very clearly say that. They didn't - they made the clear differentiation that you have no maximum, except in the bonus. Very very clearly says that. No maximum, except the bonus. Nothing about number of years, nothing about dual ISAs. No maximum. Their words not mine.

Yes, they did - as previous posters have pointed out, the paragraph immediately preceding the one you chose to quote says "In the first month you deposit in your Help to Buy: ISA you can save up to £1,200. After that the maximum you can save is £200 per calendar month.". How could those Virgin words be any clearer? Why are you choosing to fixate on a strange misinterpretation of one sentence when those surrounding it make it perfectly clear what is meant?

colsten

_CC_ wrote: »

This is probably the reason behind having no overall limit on the amount you can accrue - people will primarily be using this savings wrapper for where they save for a deposit. People will still get tax free interest from the bank on their savings within the HTB ISA.

Not sure I am fully with you. How do you define "primarily" when you say people will primarily be using this savings wrapper for where they save for a deposit?

The 'overall limit on the amount you can accrue' in an HTB ISA should be pretty much totally and entirely irrelevant to any prospective FTB. The max they can possibly put into their HTB ISA is £3,400 in year 1, and £2,400 in subsequent years.

If I am a prospective FTB and have £700 a month to save, I can put max £200 (£1,200 in month 1) into my HTB ISA. As long as I can save into the HTB ISA for at least 4 months, it is a no-brainer to take one out, as I can get a 25% bonus (up to £3,000 max blah blah) when I take out the mortgage for my first home. This can't be beaten by any other savings account.

But I would have to find another place for my remaining £500, as I cannot put the £500 into the HTB ISA on top of my monthly max £200. The best 'other' place for the prospective FTB are Regulars Savings accounts, and those current accounts that pay top interest.

_CC_

colsten wrote: »

Not sure I am fully with you. How do you define "primarily" when you say people will primarily be using this savings wrapper for where they save for a deposit?

The 'overall limit on the amount you can accrue' in an HTB ISA should be pretty much totally and entirely irrelevant to any prospective FTB. The max they can possibly put into their HTB ISA is £3,400 in year 1, and £2,400 in subsequent years.

If I am a prospective FTB and have £700 a month to save, I can put max £200 (£1,200 in month 1) into my HTB ISA. As long as I can save into the HTB ISA for at least 4 months, it is a no-brainer to take one out, as I can get a 25% bonus (up to £3,000 max blah blah) when I take out the mortgage for my first home. This can't be beaten by any other savings account.

But I would have to find another place for my remaining £500, as I cannot put the £500 into the HTB ISA on top of my monthly max £200. The best 'other' place for the prospective FTB are Regulars Savings accounts, and those current accounts that pay top interest.

Jebus, what is it with people nitpicking with wording.

To clarify, I believe the reason they have not put a limit on the overall amount you can save within the HTB ISA is because it is designed as a place for someone to save up for a deposit in a tax efficient way, even if you exceed the amount in which you receive the full 25% bonus.

It's primary in the sense it would likely be the best first place for someone to save for a deposit, even if you have more available to also save elsewhere.

Have a good weekend :money:

colsten

_CC_ wrote: »

Jebus, what is it with people nitpicking with wording.

The reason I nitpick is that the OP is prone to misinterpreting even obvious words.

WannaBLoaded

it's all very simple, put in 1200 when it opens, get 25% on top when you come to buy. Put 24000 in when it opens, get 25% of 1200 when you come to buy.

Following month, put 900 in, get 25% of 200.

Then the following month you put nothing, you get 25% of nothing.

But you get interest like a normal isa.

All very simple, lots of thick people on here.

colsten

No, you cannot put more than £1,200 in in month one. And not more than £200 in subsequent months.

Instead of insulting people, you could read the HTB ISA FAQ.

WannaBLoaded wrote: »

it's all very simple, put in 1200 when it opens, get 25% on top when you come to buy. Put 24000 in when it opens, get 25% of 1200 when you come to buy.

Following month, put 900 in, get 25% of 200.

Then the following month you put nothing, you get 25% of nothing.

But you get interest like a normal isa.

All very simple, lots of thick people on here.

eskbanker

colsten wrote: »

No, you cannot put more than £1,200 in in month one. And not more than £200 in subsequent months.

You'd think someone might have thought to mention that on a website somewhere, wouldn't you?

WannaBLoaded

get a sense of humor coldstone