Help to Buy ISA guide

Monica18

Hi
She opened cash isa in August of this year £2500 Cash . Though help to buy isa would be in different bank?

masonic

Monica18 wrote: »

Hi
She opened cash isa in August of this year £2500 Cash . Though help to buy isa would be in different bank?

A HTB ISA is a cash ISA and you can only pay money into one cash ISA per tax year. So she cannot pay any money into a HTB ISA until after 5th April 2020, unless...

- she holds both ISAs with a split ISA provider such as Nationwide or Natwest
- if her cash ISA is flexible, she flexibly withdraws the £2500 before paying into the HTB ISA

vasso

Hello. I'm going to.apply for a HTB ISA for the first time. Should I only make one application with one provider/bank or should I make 3-4 applications with different banks in case I might be rejected? Is it like you apply for a credit card that you might not get it or do the banks accept all the applications within reason? Apologies, I don't have a clue about the rules. Many thanks

eskbanker

vasso wrote: »

Hello. I'm going to.apply for a HTB ISA for the first time. Should I only make one application with one provider/bank or should I make 3-4 applications with different banks in case I might be rejected? Is it like you apply for a credit card that you might not get it or do the banks accept all the applications within reason? Apologies, I don't have a clue about the rules. Many thanks

Just make one application - unlike credit cards where you're borrowing the bank's money (and so they have to be choosy and careful), with a HTB ISA (or any other savings account) you're effectively lending them your money.

So, acceptance rates are high and even if you were rejected, chances are it would be some sort of ID-related issue that would scupper applications to other banks anyway!

bones85

I opened one with nationwide this month but applied for it end of October but I didn’t actually get a letter confirming it was open until November 5th, it won’t let me put max of £1200 in only £200

What shall I do? Will it be ok with no money in it after the deadline tonight?

masonic

bones85 wrote: »

I opened one with nationwide this month but applied for it end of October but I didn’t actually get a letter confirming it was open until November 5th, it won’t let me put max of £1200 in only £200

What shall I do? Will it be ok with no money in it after the deadline tonight?

It should be fine to leave the account empty overnight tonight. If you've not put any money in the account yet, then you ought to be able to fund the full £1,200 during December. Paying in £200 today would prevent you from paying more than £200 in during December.

Rich2808

Well less than 5 hours to go before the deadline for opening help to buy isas - its almost exciting.

Any final questions - although my suggestion at this stage if you haven't already is just open one online (even with a zero balance) and worry about the details (eg another cash isas opened this tax year - which you can close or move to a split isa provider like Nationwide) later!

HMRC probably have other things to worry about anyway.

bones85

Ok cool I’ll pop to my nearest branch on Monday

Ignatius1

Hi.... I know that Barclays pay out 0.8% more interest, but I'm not sure if once I open the Barclays I'm then not able to open a cash-ISA in this tax year..... I'm basically going on some text here

The third column of that table, "Can I split my cash ISA?", is what interests me.... I'm not sure if that means that I will then become ineligible to open a cash ISA in this tax year (I haven't actually opened any type of ISA in several+ years), or if it only means that there are some issues if I had already paid some money into a cash ISA this current tax year. I'm thinking it's the latter. I know that the table states that it is possible to split with Nationwide, and there is a workaround.

So, if I open the Barclays Help to Buy ISA, can I then, say in January 2020 (or any time up until the end of this current tax year), open a cash ISA?

If not, then I presume that my opening an ISA in the 2020/21 tax year would not be a problem, and I'd be able to pay into the Help to Buy as well as another provider's ISA.... Is this correct?

Thanks!

masonic

Ignatius1 wrote: »

So, if I open the Barclays Help to Buy ISA, can I then, say in January 2020 (or any time up until the end of this current tax year), open a cash ISA?

If not, then I presume that my opening an ISA in the 2020/21 tax year would not be a problem, and I'd be able to pay into the Help to Buy as well as another provider's ISA.... Is this correct?

No and no, if you want to pay into both a HTB ISA and another cash ISA in the same tax year, you need to hold both with a split ISA provider.