Help to Buy ISA guide

Ignatius1

OK.... Thanks..... So, basically if I open the Barclays then I can only ever have that ISA product? And if I open the Nationwide then I can have that ISA product open as well as another provider's?

Individuals can open one ISA product per tax year, can they not? And the allowance is £20,000... So, even if I opened the Barclays, could I then not open another ISA product in the 2020/21 tax year? I would have thought so, but there seems to be many intricacies...

https://www.moneysavingexpert.com/savings/help-to-buy-ISA/#barclays

As that final column ("Can I split my cash ISA?") reads 'No' for Barclays and 'Yes' for Nationwide, might it be a safer option to opt for the Nationwide?

masonic

Ignatius1 wrote: »

OK.... Thanks..... So, basically if I open the Barclays then I can only ever have that ISA product? And if I open the Nationwide then I can have that ISA product open as well as another provider's?

If you've opened the Barclays HTB ISA then you cannot pay into another cash ISA until the tax year after you stop paying into the Barclays HTB ISA.

If you've opened the Nationwide HTB ISA then you cannot pay into another cash ISA, except one with Nationwide until the tax year after you stop paying into your Nationwide ISAs.

Individuals can open one ISA product per tax year, can they not?

There is no limit to the number of ISA products that can be opened. You can only pay into one ISA of each type per tax year. The HTB ISA is a cash ISA, so you cannot pay into another cash ISA in any tax year you pay into the HTB ISA, except in cases such as Nationwide where multiple accounts held with them are counted as one ISA.

And the allowance is £20,000... So, even if I opened the Barclays, could I then not open another ISA product in the 2020/21 tax year? I would have thought so, but there seems to be many intricacies...

Yes, you could open and fund a S&S ISA or a LISA (or an IF ISA), but not another cash ISA.

https://www.moneysavingexpert.com/savings/help-to-buy-ISA/#barclays

As that final column ("Can I split my cash ISA?") reads 'No' for Barclays and 'Yes' for Nationwide, might it be a safer option to opt for the Nationwide?

Yes, if you want to hold another cash ISA, then you can do so at Nationwide, so hopefully that's what you've done. Otherwise you'll need to transfer your HTB ISA there before you can open another cash ISA with Nationwide.

The_Old_Bag

Well - what a nightmare.
Applied on Friday for Nat West HTB one on-line for my daughter.
But got no reference number
No email from them.
Nothing.... apart from a screen with "What happens next" and further down asking for my feedback.
So, not to worry thought I.

Then saw on Friday night News that Nat West Website had crashed on Friday - unable to cope with Black Friday shopping.
Panic!

So Saturday morning (still no acknowledgement from NW) I spent over an hour on the phone to NW trying to make sure my application had gone through ok.
After being passed from pillar to post - the conclusion was - Nat West had absolutely no idea.

OK, says I, Can I apply again this morning - just in case.
Yes says Nat West.

So I start applying AGAIN on-line - only for the system to keep defaulting me to On-line banking.
All considerably different screens to what I had completed on Friday.
Further Panic!

Another hour on the phone to Nat West to find out what I was doing wrong.
Nothing.
Nat West had simply decided to change their deadline ON THE LAST DAY !! - so now only existing customers could apply on-line.

So, I raced like a maniac to nearest branch and queued up, to do the application in branch.

But No, cannot do it in branch, unless my daughter is there. (She was working) - can I bring her in later? (deadline was supposed to be 5pm)
No, they close at lunchtime.
What a kerfuffle!!
Fingers crossed I eventually hear from Nat West.

masonic

I hope it didn't ruin your daughter's 16th birthday.

Grace_Lucy

Hi all,

I am a bit confused about the help to buy Isa and am looking for a little advice just to clear up my confusion about it. I have a cash Isa which I opened not this tax year but last tax year and have been paying into it a little this tax year. I know you cannot pay into more than one Isa in the same tax year but have applied for a help to buy Isa with a starting balance of £1. I know opening a new account with a starting balance isn't paying into another account in the same tax year but do I have to get rid of my cash Isa and transfer it into my help to buy Isa.

eskbanker

Grace_Lucy wrote: »

I know you cannot pay into more than one Isa in the same tax year but have applied for a help to buy Isa with a starting balance of £1. I know opening a new account with a starting balance isn't paying into another account in the same tax year

It is paying into two in the same tax year and so is non-compliant and needs to be fixed, unless both are with the same provider and that provider is one of the few offering split ISAs.

Grace_Lucy wrote: »

do I have to get rid of my cash Isa and transfer it into my help to buy Isa.

Assuming you don't have both ISAs with a split ISA provider, you don't need to get rid of your non-HTB cash ISA but you do need to withdraw all of this year's contributions before paying anything into the HTB, either by transferring to the HTB (if within HTB contribution limits) or withdrawing to your bank account. See this thread: https://forums.moneysavingexpert.com/showthread.php?p=76552263

elgorrion

Hi, I have read the guide - I applied for a HTB ISA (on Friday just before the deadline!);

Can I also get a shares ISA or is that against the rules? If the latter, can I buy shares in another way?
I want to use the X-O platform as I don't expect to be doing many trades; their charges mention "ISA withdrawals" but the website gives the impression that it isn't necessarily using an ISA.
Thanks

eskbanker

elgorrion wrote: »

Hi, I have read the guide - I applied for a HTB ISA (on Friday just before the deadline!);

Can I also get a shares ISA or is that against the rules? If the latter, can I buy shares in another way?
I want to use the X-O platform as I don't expect to be doing many trades; their charges mention "ISA withdrawals" but the website gives the impression that it isn't necessarily using an ISA.
Thanks

You are allowed to open and fund a S&S ISA alongside a cash/HTB ISA, and X-O do offer one, https://www.x-o.co.uk/isa-account.html

Are you sure that trading (or even investing) is compatible with saving for first property purchase, i.e. are you clear about what you want to achieve and how to do so? Buying shares is generally worth avoiding except for experienced investors and/or those who can afford to lose money....

Grace_Lucy

I have both my ISAS with Nationwide and so I believe it to be a split Isa. So long as I don't succeed the 20,000 a year limit for both Isa put together and go over the 200 a month for the help to buy Isa it does not matter how much I put into my Isas. Is that right?? Also, what does it mean by a Split Isa?? And finally, when it states that the first calendar month you can put up to 1200 in a help to buy Isa does it mean that month you open it or a month on from the date you opened it, as I opened my account on the 30th November can I still put up to 1200 in or has it gone to only 200 a month??

eskbanker

Grace_Lucy wrote: »

I have both my ISAS with Nationwide and so I believe it to be a split Isa. So long as I don't succeed the 20,000 a year limit for both Isa put together and go over the 200 a month for the help to buy Isa it does not matter how much I put into my Isas. Is that right?? Also, what does it mean by a Split Isa??

Split ISA is effectively the (unofficial) term for exactly what you're doing, i.e. operating two cash ISAs with a provider who treats them as if they're a single ISA and therefore you are able to pay into both, subject to the overall £20K annual ISA allowance and also the product-specific HTB limit of £200/month.

Grace_Lucy wrote: »

when it states that the first calendar month you can put up to 1200 in a help to buy Isa does it mean that month you open it or a month on from the date you opened it, as I opened my account on the 30th November can I still put up to 1200 in or has it gone to only 200 a month??

In this scenario, calendar month signifies that if you paid anything (even £1) into your new HTB ISA on 30 November then you only had until the end of that day to complete the £1,200 initial monthly funding. On the other hand, if the first payment into the account was in December then you have until the 31st of this month to pay in the £1,200.