Help To Buy ISA Rates

KDH_2

This page seems to be keeping up with developments too...

http://www.moneysavingexpert.com/savings/help-to-buy-ISA

numbers123

Nice one, Halifax! Colour me impressed.

MDMD

Natwest allow you to pay into another Natwest iSA at the same time, and although the rates are worse than rubbish, at least you can preserve the allowance if you so wish.

https://supportcentre.natwest.com/app/answers/detail/a_id/5084/

Sam_J12

People should note the "catch" with the Halifax Help to Buy ISA - it effectively reduces the amount you can pay into a cash ISA to £2400/year (£3400 in the first year). This is not the case with the Nationwide HtB ISA. Not a problem if you don't want to put more than that in an ISA or if you are happy to use a S&S ISA instead.

colsten

Sam_J12 wrote: »

People should note the "catch" with the Halifax Help to Buy ISA - it effectively reduces the amount you can pay into a cash ISA to £2400/year (£3400 in the first year). This is not the case with the Nationwide HtB ISA. Not a problem if you don't want to put more than that in an ISA or if you are happy to use a S&S ISA instead.

You misunderstand the Nationwide offers. They can manage a number of cash ISA products as one single subscription, so you can have

1. an HTB ISA which has the same deposit limits like an HTB ISA with any other provider, at 2% AER. The absolute max you can pay into this ISA this tax year is £1,800, and £2,400 in subsequent tax years.
   
   Plus Nationwide let you have - - -
   
   
2. another of their cash ISAs, at a much lower AER, e.g. their FlexClusive ISA at 1.6%. If you max your Nationwide HTB ISA, you can pay £13,440 into this ISA in this financial year, and £12,840 in subsequent years (assuming the ISA allowance will stay at £15,240).
   
   Making use of this option pays you a lot less interest than you can get in non-ISA accounts for your remaining £13,440/£12,840 but the short-sighted "must have a cash ISA" mantra will probably lure some people into it.

jimjames

Reading the details on the Virgin site after a previous thread it does appear that you don't need to be a first time buyer to open an account.

https://uk.virginmoney.com/virgin/savings/help-to-buy-isa/

One Help to Buy: ISA can be opened per person, aged 16 or over with a valid National Insurance number.

But you can't get the bonus unless you are a FTB

The bonus will only be payable to first time buyers of a residential property in the UK, who have never owned any interest in a property previously.

So it could still be beneficial for anyone wanting to get 4% tax free over a number of years.

colsten

jimjames wrote: »

Reading the details on the Virgin site after a previous thread it does appear that you don't need to be a first time buyer to open an account.

You are reading some marketing bumph, not T&Cs. I believe each ISA provider will be obliged to make the applicant sign a declaration that they qualify as a first time buyer. I don't know whether and how this is verified but personally wouldn't make a false declaration.

5.2 Eligible Customer Declaration
(A) An Eligible ISA Manager shall not open a Help to Buy: ISA for an individual
without first obtaining an Eligible Customer Declaration from that individual.

You can see the Eligible Customer Declaration in Schedule 4 on page 61 of the H.M. Treasury Help To Buy: ISA Scheme Rules

An ISA provider ignoring those rules risks being disqualified as an ISA provider, and I would expect HMRC would take quite a dim view of people making false declarations.

Lolly88

Woo hoo, way to go Halifax, I'm very impressed with 4%. I've been waiting ages to hear more information about the HTB ISA's. I'm far too excited than is normal to be about this whole thing.

colsten

As a BR tax payer, you have been able to make a net 4% AER on not just £200, but on £800 a month for absolute ages. See Regular Savings accounts at FD/M&S/HSBC. From next April, many people will realise a full 6% on those accounts, if their total annual interest is less than £1,000 and if they are basic rate tax payers.

Because of the 25% bonus, the HTB ISA tops any other deals for those still looking to buy their first property, and I hope those eligible will avail themselves.

I also hope that those with extra money / not eligible for an HTB ISA will know that cash ISAs aren't the most desirable place for your savings, and that they will find those places. Huge amount of information about best accounts on this forum.