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Help to buy ISA 4%

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Comments

  • snowqueen555
    snowqueen555 Posts: 1,571 Forumite
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    Does this 4% keep paying out even near the end of the 5 year term when you have nearly £12000?
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    snowqueen555 wrote: »
    Does this 4% keep paying out even near the end of the 5 year term when you have nearly £12000?
    The 4% rate (of the product being discussed here) is a variable rate. If the variable rate hasn't varied in the interim, it will still be paying 4% towards the end of the 5 year term, yes.
  • Masomnia
    Masomnia Posts: 19,506 Forumite
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    If it varies downwards you'll (we'll :) ) be able to transfer. Hopefully to a better rate.
    “I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse
  • jimjames
    jimjames Posts: 18,909 Forumite
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    snowqueen555 wrote: »
    Does this 4% keep paying out even near the end of the 5 year term when you have nearly £12000?
    Also bear in mind there is no fixed term, at least according to Virgin. There is a maximum bonus the government will pay but you can save more than that, for longer if you wish.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    jimjames wrote: »
    Also bear in mind there is no fixed term, at least according to Virgin. There is a maximum bonus the government will pay but you can save more than that, for longer if you wish.

    Somebody can save £50 a month if they wish. May take them 20 years to save a house deposit. But that appears to be the idea behind the scheme. Allow people to aspire and dream.
  • colsten
    colsten Posts: 17,597 Forumite
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    Thrugelmir wrote: »
    Somebody can save £50 a month if they wish. May take them 20 years to save a house deposit. But that appears to be the idea behind the scheme. Allow people to aspire and dream.

    Present legislation:

    No claims for the 25% bonus will be accepted after December 1 2030. Clause 7.9 in http://www.helptobuy.gov.uk/docs/default-source/default-document-library/151102---scheme-rules.pdf?sfvrsn=2

    No new HTB ISAs can be taken out after 1 December 2019 (ref same document).
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    colsten wrote: »
    Present legislation:

    No claims for the 25% bonus will be accepted after December 1 2030. Clause 7.9 in http://www.helptobuy.gov.uk/docs/default-source/default-document-library/151102---scheme-rules.pdf?sfvrsn=2

    No new HTB ISAs can be taken out after 1 December 2019 (ref same document).

    15 years (180 months) is still an extended period of time.

    December 2019 is well timed. As allows the Tories to announce either a new scheme or extension of the scheme in the run up to the next election. Makes for good publicity headlines.
  • bsms1147
    bsms1147 Posts: 2,277 Forumite
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    Do you think it's possible to open a HTB ISA and still have an HSBC ISA paying the £10 a month, so long as the original funds are withdrawn from the HSBC ISA?
  • masonic
    masonic Posts: 27,967 Forumite
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    edited 29 November 2015 at 5:51AM
    bsms1147 wrote: »
    Do you think it's possible to open a HTB ISA and still have an HSBC ISA paying the £10 a month, so long as the original funds are withdrawn from the HSBC ISA?
    Assuming you mean before the end of this tax year... If you withdraw all of the funds from your HSBC ISA and close it, then pay those funds into a HTB ISA, it would probably be permitted under the self transfer rules. Alternatively, you could do a standard ISA transfer from HSBC to your chosen HTB account.
  • jimjames
    jimjames Posts: 18,909 Forumite
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    bsms1147 wrote: »
    Do you think it's possible to open a HTB ISA and still have an HSBC ISA paying the £10 a month, so long as the original funds are withdrawn from the HSBC ISA?

    Depends if you think closing it and losing free£40 is worth itor just save a few months longer to make up the balance.
    Remember the saying: if it looks too good to be true it almost certainly is.
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