Help to Buy ISA guide

groupThink

@eskbanker


Thanks for the insightful advice, I really appreciate it.

JackBetherz12

Hi, quick question about transferring Help-to-Buy (HTB) Isas.
The best way to explain it I suppose would be by giving an example. Say for example I have a Natwest HTB isa for a year and have the max £3457 (incl interest) within the ISA. However, Natwest, due to the variable interest rate, send me a notice informing me that the AER is decreasing on my HTB account in 60 days time. Following a comparison I see another bank (lets say Barclays for the example) have a higher AER on their HTB than Natwest. Would I be able to transfer the full £3457 amount I have in my Natwest HTB to the Barclays HTB or would I have start again from £200 (having already used my 1200 initial deposit to set up the Natwest)?
Any help would be great as this is the deciding factor between me setting up a fixed rate cash isa or a HTB. Have no intention in buying my first house in the near future but by 2030 (deadline to use the gov bonus) the likelihood is I will have bought a house.
Thanks in advance

eskbanker

JackBetherz12 wrote: »

Hi, quick question about transferring Help-to-Buy (HTB) Isas.
The best way to explain it I suppose would be by giving an example. Say for example I have a Natwest HTB isa for a year and have the max £3457 (incl interest) within the ISA. However, Natwest, due to the variable interest rate, send me a notice informing me that the AER is decreasing on my HTB account in 60 days time. Following a comparison I see another bank (lets say Barclays for the example) have a higher AER on their HTB than Natwest. Would I be able to transfer the full £3457 amount I have in my Natwest HTB to the Barclays HTB or would I have start again from £200 (having already used my 1200 initial deposit to set up the Natwest)?
Any help would be great as this is the deciding factor between me setting up a fixed rate cash isa or a HTB. Have no intention in buying my first house in the near future but by 2030 (deadline to use the gov bonus) the likelihood is I will have bought a house.
Thanks in advance

You are allowed under the scheme rules to transfer your entire HTB ISA balance from one provider to another, without having to start again.

However, it's been reported numerous times on here that Barclays employees in particular don't seem to know or accept this and often give inaccurate advice on the subject....

katies_mum

Good morning, please could I ask if anyone has opened a Nationwide HTB Isa and how long it actually took to get the account open?

My daughter applied online last Tuesday 10th, and got an email reply that said it may take up to 5 working days for us to set up your new account. Yesterday, the 19th she received another email to say account is open but she has been given no account number or any details to enable her to use the account. Is this the norm with Nationwide (the first time any of us have used them). She has her £1200 ready to make a deposit.

The alternative was a HTB Isa with Virgin, would she be better applying to them are they any quicker? is the process for a HTB Isa long winded because its a slightly different type of account?

She would be very grateful for any advice, thank you

Alexland

If the account is now open she could phone them or visit branch and they can provide details on how to make the initial deposit. Often it takes longer to setup new customers for telephone or internet banking than to simply open a new account.

katies_mum

Hi, thank you. She has rung them and they cannot help, said she could go into a branch but the reason she opened the account online was because she could not get to a branch within their opening hours.

It just seems to long winded, we all opened Paragon Isa`s last year, they were opened on line straight away and then within a few days letter with log in details arrived. I appreciate maybe these accounts are a bit more involved but its been 10 days in total since she applied...fingers crossed something arrives in the post tomorrow.

Alexland

The delay is unlikely to be because the account is a HTB ISA but more likely that Nationwide have a standard onboarding process for new customers, telephone and internet banking across multiple products. Once she has been setup for the first time its really quick to open additional accounts.

katies_mum

Thank you for explaining that, she just expected it all to be sorted a lot quicker going on past experience of other accounts we have all opened online. As long as she can get her £1200 in before the end of the month!

suejb2

Background
Have a daughter almost 17. She has her own accounts Santander and Monzo (sp) also has a CTF. Heard recently that HTB ISAs are soon to close and Martin recommended opening one with just a £1.
At 16 she is not looking at property, she has college and then uni to deal with. Is it a good idea to simply open one now on the chance she can use it in years to come if she wants to?
Thank you in advance.

Alexland

There is no harm in opening a HTB ISA with a minimum deposit to keep options open as there is no penalty to withdraw money and the interest rate is fairly good. The only downside is that she would not be able to contribute into another Cash ISA in the same tax year unless the provider offers Split Cash ISAs.

Alex