Help to buy ISA 4%

savings_my_hobby

I read today that the new help to buy ISA launching December 1st is paying up to 4% (Halifax) the others seem to be around 2%.
http://www.moneysavingexpert.com/savings/help-to-buy-ISA

System

I think 4% as a maximum isn't that great if rates rise, and im disappointed that the 25% isnt added straight awar to earn interest, if its the best option go for it, or you could just dump the money in as late as poss to get the 25%

YorkshireBoy

MatthewAinsworth wrote: »

I think 4% as a maximum isn't that great if rates rise, and im disappointed that the 25% isnt added straight awar to earn interest, if its the best option go for it, or you could just dump the money in as late as poss to get the 25%

Later next month, ie December 2015...just 5 weeks away, you mean? You haven't read up on this at all have you!?

aled247

MatthewAinsworth wrote: »

I think 4% as a maximum isn't that great if rates rise, and im disappointed that the 25% isnt added straight awar to earn interest, if its the best option go for it, or you could just dump the money in as late as poss to get the 25%

No you cannot dump the money in as late as possible, maximum is £200 a month after initial deposit of £1200

veryintrigued

MatthewAinsworth wrote: »

I think 4% as a maximum isn't that great

4% (variable) tax free not great in the current market? Really?

I bet the 25% bonus is poor too?

Maybe the the tax payer should pay 100% for first time buyers houses?

System

Compared to buy to let funds where they pool your money together with others

System

And if rates do go up money won't be mobile in new isa I assume

colsten

MatthewAinsworth wrote: »

And if rates do go up money won't be mobile in new isa I assume

You can transfer them like other cash ISAs

jimjames

I'm wondering if there is any obligation to buy a house or to be a first time buyer to open an account? If not then it could be a cash ISA worth having for anyone at 4% tax free. 25% government bonus wouldn't be obtained but you still get 4% interest.

savings_my_hobby

In my view, the help to buy isa would be worth having even if the the interest was negligible, 25% bonus is a huge incentive. Im not sure how far £3000 will get you in terms of fees and surveyors costs but it will pay for something and whatever that is its one less thing to pay for.

4% is a great rate and 2% is better than other ISA's including my Halifax cash ISA which pays a reduced rate of 0.8% hence why I follow others down the multiple current account route.

The big minus for me is the £200 per month cap, but for most people stuck in the "rent trap" £200 per month saving is pretty good going and respect to anyone who can achieve more.

savings_my_hobby

jimjames wrote: »

I'm wondering if there is any obligation to buy a house or to be a first time buyer to open an account? If not then it could be a cash ISA worth having for anyone at 4% tax free. 25% government bonus wouldn't be obtained but you still get 4% interest.

I dont think there is an obligation to buy a house I'm sure I read when HTB ISA was announced that the only penalty was "no bonus", to be fair though that like everything else was probably pure speculation.

If there is a way to check whether someone has owned an interest in a property then you may depend they will employ it.

Valid point though