Help to Buy ISA guide

bravotango

Hi,

I have a query regarding HTB ISA, which I want apply for.

Basically, I have a Fixed Cash ISA (with Santander) which is due to mature in 2 weeks. I have *not* opened, nor put any funds into a Cash ISA this tax year (i.e. from 5th April 2015), and want to get some clarification on the term "subscribe" to a Cash ISA in the same tax year.

Would I be able open a new HTB ISA (maybe with Halifax) and renew my existing Fixed Rate Cash ISA for another year or two? (would it make a difference if I do *not* add any new funds?)

Sorry, but just want to make sure I understand this correctly!

Many thanks

:beer:

colsten

bravotango wrote: »

Would I be able open a new HTB ISA (maybe with Halifax) and renew my existing Fixed Rate Cash ISA for another year or two? (would it make a difference if I do *not* add any new funds?)

Yes you can subscribe to an HTB ISA if you do not subscribe to another cash ISA (unless it is a split ISA but let's not go there for now) in the same tax year . "Subscribe" means you adding new money to an ISA. For the avoidance of doubt,

• an ISA transfer carried out by the new ISA provider is not considered a subscription.
• if you move the money yourself from an old to a new ISA, you have made a subscription.

bravotango

OK, so I should be able to open a new HTB ISA, and renew my existing Fixed Rate Cash ISA (with probably the same provider) when it matures, so long I don't add any new funds to the existing balance?

MARTYM8`

colsten wrote: »

May I suggest you read the T&Cs. Then consider whether you'd want to risk to have all your Halifax accounts closed, and also whether you'd want to risk that HMRC/their administrators (UKAR) know that you opened an ISA you are not entitled to. All that for a scheme that doesn't even pay you the best possible interest.


Why would anyone want a 2% ISA when they can get a 6% RS?

Because they might have maxed out their other current account options and be a higher rate taxpayer (i.e. the equivalent of 3.33%) - plus the 2% ISA with Bucks is not a fixed 12 month term like the current account regular savers but is ongoing.

Not for most - but for some it might be a better option as only Club Lloyds, TSB and Nationwide (for one year) pay more than 3% instant access gross.

For a higher ratetaxpayer with lots of savings - and lets be honest to buy in London now that is what you need to be - it may be suitable.

colsten

MARTYM8` wrote: »

Because they might have maxed out their other current account options

xannus said they only have account with Halifax, so they don't fall into that category.

But let's assume someone had maxed out their current account options and still needed cash savings options (a rather unlikely scenario because they are unlikely to want to stay in much more cash). Their next step would be the 6-5-4 and may be even 3% Regular Savers (which take between £2K and £3.5K a month) before a 2% RS ISA might make any sense.

Gwinike

Sorry I'm not an expert, I come from Hungary, so I'm quite confused now. Where can I get 5 or 6% for the rest of my savings?
Thank you

colsten

Just look around on the forum.

struckbyastar

Reading up on everything and got so many questions but no one to turn to for impartial advice!
My partner and I want to start saving together. I am self employed and at present we don't have a set monthly income although between us we do have money we would like to put into savings together. We would at some point like to buy a house, however this is just one of the reasons why we want to save and -we all know what life is like - there is always the possibility of something coming up -a wedding? ahem- that we'd need savings for!

We're unsure as to whether we'd be best just getting a high interest savings account, a HTB isa each, or one a HTB and one a cash ISA...

Any advice gratefully welcome!!

jimjames

struckbyastar wrote: »

We're unsure as to whether we'd be best just getting a high interest savings account, a HTB isa each, or one a HTB and one a cash ISA...

Get whichever account(s) pay the highest rate of interest. It's unlikely that will be a cash ISA but HTB could be worthwhile if you might buy a house and can maintain the payments into it.


At the moment current accounts pay the best interest rates apart from the HTB ISA so I'd look at those first.

Gwinike

Thank you for your help. I read through and now I can understand. My last question would be, what do you think about which current account would be better for us: one current account each or a joint one together? My husband's salary is more than 1000, but I'm self employed and my salary is about 5 or 600.