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Help to Buy ISA guide

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
2.2K replies 345K views
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  • jimjamesjimjames Forumite
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    riccirus wrote: »
    therefore i would lose out on a lot of tax free eligible savings.
    Yes but that's doing you a favour. Not point chasing an account because it's tax free yet pays a tiny rate in comparison to a taxed account especially after the rules change next year.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • MJD wrote: »
    Have I understood this correctly?

    I am aware that I cannot have a Cash ISA and a HTB-ISA in the same tax year (yes I know that the Nationwide are doing a split ISA but that aside).
    I have paid about £3000 into a cash ISA this tax year. If I withdraw that £3000 from the account so that I no longer have a current tax year's cash ISA and do not pay any more into that account does this then qualify me to open a HTB ISA?


    I am in a similar situation where my partner and I pay monthly into my isa, does this mean we both we would have to get split ISA S? It's still a little confusing.
  • I currently save £1000pcm and am hoping this will go up to about £1200 a month in February next year. I'm looking at starting the house buying process in March 2016. I want to open a Help to Buy ISA for the £200pcm but am unsure where to save the other £800pcm. It's currently all just in a normal savings account so literally get pence in interest.
    Should I get the Nationwide split ISA and where should I save the rest?
    Any advice much appreciated :) thank you
  • edited 1 December 2015 at 9:34PM
    fever84fever84 Forumite
    1 posts
    edited 1 December 2015 at 9:34PM
    I went into nationwide today and opened a 2% help to buy isa and a 1.4% cash isa. Feel feel to ask any questions. This was the best choice for me because I already had a lot of savings in a low interest isa

    I opened the the help to buy isa with £1 which I have till the end of December to transfer up to £1199 and I closed my old cash isa and transferred it into the new cash ISA
  • colstencolsten Forumite
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    MissC84 wrote: »
    I currently save £1000pcm and am hoping this will go up to about £1200 a month in February next year. I'm looking at starting the house buying process in March 2016. I want to open a Help to Buy ISA for the £200pcm but am unsure where to save the other £800pcm. It's currently all just in a normal savings account so literally get pence in interest.
    Should I get the Nationwide split ISA and where should I save the rest?
    Any advice much appreciated :) thank you

    Unless you don't care about the interest you can earn, the last place to put any of your money would be a non-HTB cash ISA. Check out the various interest paying current accounts, as well as the monthly savers which offer flexible withdrawals, such as the 5% ones offered by Nationwide and TSB etc.
  • colstencolsten Forumite
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    riccirus wrote: »
    It says you can only contribute to one cash isa in a tax year, does this mean that this will be the only cash isa you can out money in for as long as you have it. For example if I deposit £200 into a help to buy isa every month for 5 years i wont be able to put money into any other cash isa in those 5 years? therefore i would lose out on a lot of tax free eligible savings.
    Why would you want to put any money into a non-HTB cash ISA when you can get between 3 and 6% in non-ISA accounts? Even if you had to pay tax on them, they are likely to beat those ISAs by a mile. And from April 2016, there's a good chance you won't have to pay any tax on any of them, unless you earn more than £1,000 interest a year (£500 if you are a HR tax payer, nil if you are on Advanced Rtae).
  • Can someone help me please, if I go for the halifax htb isa that is offering 4% but buy a house in less than a year do I loose out on earning 4% tax free because this is paid annually?
  • Aj28Aj28 Forumite
    2 posts
    Hi,

    So after having read & watched as much as I can on this I am still confused...

    I currently have not opened an ISA this tax year, yet have money in an old one (anticipating the HTB -ISA). With this amount I am unsure what to do...

    From what I can make out it would be best to open a split HTB-ISA (e.g. - Nationwide) and any extra over the £200/pm I can save would first go into topping my allowance up and then into a regular saver of some sort?

    Please if anyone can help it would be much appreciated.
  • I transferred my cash ISA provider this year. I think i'm not eligible for HTD ISA this tax year?
  • jimjamesjimjames Forumite
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    Aj28 wrote: »
    Hi,

    So after having read & watched as much as I can on this I am still confused...

    I currently have not opened an ISA this tax year, yet have money in an old one (anticipating the HTB -ISA). With this amount I am unsure what to do...

    From what I can make out it would be best to open a split HTB-ISA (e.g. - Nationwide) and any extra over the £200/pm I can save would first go into topping my allowance up and then into a regular saver of some sort?

    Please if anyone can help it would be much appreciated.
    Not sure which bits you've been reading but I can't see any reason why you'd want to have a split ISA with any part in a non HTB ISA when you can get such vastly better rates elsewhere.

    Any extra over the £200 HTB amount can then just go into the non ISA account paying 5%.
    Remember the saying: if it looks too good to be true it almost certainly is.
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