Help to Buy ISA guide

Sara_H_2

Hello all, my 16 year old son has a stocks and shares child trust fund, can he open a help to buy ISA?

badger09

Sara_H wrote: »

Hello all, my 16 year old son has a stocks and shares child trust fund, can he open a help to buy ISA?

Yes he can

B000n0191

Hello people just signed up to the forum and ill be as brief as possible

im 32

got around 7k saved up in my account

what are my best options for a help to buy isa

also can put in around 2k a month into isa


thanks for your help

eskbanker

B000n0191 wrote: »

got around 7k saved up in my account

what are my best options for a help to buy isa

also can put in around 2k a month into isa

Best buy HTB ISAs are shown at https://www.moneysavingexpert.com/savings/help-to-buy-ISA/#bestbuys

You may find it better to use a Lifetime ISA as this has a higher annual contribution limit, although you'd be penalised if wanting to buy your first property with a year of opening one.

Other ideas at:
https://www.moneysavingexpert.com/savings/which-saving-account/
http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

Cash ISAs are listed at https://www.moneysavingexpert.com/savings/best-cash-isa/ but (other than HTB) are often beaten by taxable accounts until you exceed your personal savings allowance....

Alexland

Yes putting £4k per tax year into a Lifetime ISA would generate a bigger 25% bonus towards your property purchase than £200 per month into a HTB ISA. You couldn't buy for a year, the property price cap is £450k and there is a penalty for any other withdrawal before age 60.

https://www.moneyboxapp.com/cash-lifetime-isa/

B000n0191

Thanks

I would be looking to buy withings the next year ideally as I should have the deposit by then

The only question is what yields the best return

Alexland

Look at the HTB ISA best buy table in the above link that eskbanker posted.

grumiofoundation

B000n0191 wrote: »

Thanks

I would be looking to buy withings the next year ideally as I should have the deposit by then

The only question is what yields the best return

Still probably worth opening lifetime isa with £1 now. Since LISA has to be open for 1 year if your plans change/turns out you won’t buy within next 12 months you may be able to use LISA to maximise government bonus.

Rich2808

Alexland wrote: »

Yes putting £4k per tax year into a Lifetime ISA would generate a bigger 25% bonus towards your property purchase than £200 per month into a HTB ISA. You couldn't buy for a year, the property price cap is £450k and there is a penalty for any other withdrawal before age 60.

https://www.moneyboxapp.com/cash-lifetime-isa/

The help to buy isa is still a good option given the much higher interest rates paid – most accounts pay 2% if not 2.5%. And if the person is buying in London the £450k house price limit is the same for both products.
Help to buy isa for the interest (or if you are buying soon or are an FTB over 40 so ineligible for the lifetime isa possibly the bonus) – lifetime isa for the bonus.

Alexland

Sure HTB ISA is still a good product but the main advantage of the LISA in this case is that the poster already has £7k saved up so with a LISA they can contribute £4,000 this tax year but with a HTB ISA they would only be able to contribute £2,400 this tax year and by coincidence the same next tax year. The bigger 25% bonus would outweigh the difference in interest rates.