Help with a 'Help to Buy' ISA

jr2015

Thanks for your advice.

I suppose in my mind, at no point could we receive 20% tax free interest on any ISA that we take out and begin paying into. I believe it's capped at £1200 as an opening amount, and then a maximum of £200 each per month, up until you reach £15,000 - which as you mentioned would take a fair few years to get to.

So even if we each start one up, and save until the end of next year, it would allow us to save £2.6k each (e.g. 13 months at £200). The opening balance would be £1200 each, so £5,000 saved in total, allowing us to gain £1000 of interest in one year (or by December 2016 when we're thinking of properly looking to buy), which I believe we wouldn't be able to receive from any other savings account.

I suppose my question was if you are buying a property above £250k, is starting a HTB ISA pointless, as the government would say no to paying the 20% interest when applying to close the ISA and regain the interest through a solicitor?

Thanks again for all of your help in clarifying.

[Deleted User]

dannim12345 wrote: »

As this kind of links to this question. IS it worth getting one of these ISA's even if you might not be able to take advantage of the bonus? I.e if you take it out too soon or buy over the limit, is the interest comparable to other saving accounts & do you still get the interest?

According to point 9 - yes. If you can't use the HTB bonus for whatever reason, you still get the tax-free interest like a normal ISA.

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