Help to Buy ISA guide

Gwinike

Thank you. What do you think which is the best option? In Halifax they didn't tell us that we can just close the Barclays cash ISA and open a HTB ISA with Halifax. They said we need to wait till April or go to open a split one somewhere. Other: we have a joint account with my husband at Barclays, but as I can see, the cash ISA in just on his name. Is tha right? The signatory name on the ISA is his name, so can I open a HTB ISA then?

colsten

ISAs can never be held jointly, they are always just in one name. Every UK resident aged 16 or over can hold ISA accounts. If you are both first time buyers and at least 16 years old, each of you can have an HTB ISA. If you have children, each of them can also hold a Junior ISA (JISA).

colsten

Gwinike wrote: »

What do you think which is the best option?

Looking at your previous posts, it appears that there is about £4,000 in your husband's existing ISA.

The best would be to open a few TSB Plus accounts - you can each have one in your sole name, and one joint one. That will give you access to 5% AER on up to £6,000 (£2,000 in each account), so more than enough for the ISA money. You can also have 5% monthly savings accounts at TSB. From April 2016 onwards, you will both have an allowance (at least £500, probably £1,000 each) for interest, so you will receive 5% net of tax if all your savings are in these accounts. Simple T&Cs apply, please read them to make sure you qualify for the interest.

When the accounts are open, close the Barclays ISA and distribute your cash across the three TSB accounts.

Also, if you expect that you can claim the HTB ISA bonus, open at least one, possibly two HTB ISAs with Halifax. Do it online so they don't ask you questions you might not know the answers to.

Gwinike

On tha Barclays page it is said that if i close the ISA inthe same year when I opened it, i can't open another cash ISA in the same year. So if I will close t now, I can't open a HTB ISA till next April. Is that right?

colsten

Gwinike wrote: »

On tha Barclays page it is said that if i close the ISA inthe same year when I opened it, i can't open another cash ISA in the same year. So if I will close t now, I can't open a HTB ISA till next April. Is that right?

No this is not correct.

Your husband can open an HTB ISA as soon as he has closed his Barclays ISA.

You can open an HTB ISA right now, this minute, as you don't have an existing ISA.

This is what Ed-1 already posted earlier, and I agree. If anyone tells you any different, they simply do not understand the ISA rules. Shockingly, many bank employees don't. The rules are all available on the internet, and here is a relevant extract from a Treasury website:

I already have a cash ISA – can I open a Help to Buy: ISA too?

You can put money into a cash ISA and Help to Buy: ISA in the same tax year, but you will have to take additional steps.

If you paid into a cash ISA after 5 April 2015, to open a Help to Buy: ISA this tax year (ie before 6 April 2016), you will have to transfer your active cash ISA to a Help to Buy: ISA.

You can transfer up to £1,200 (i.e. you can decide to transfer £0) of your active cash ISA balance into your Help to Buy: ISA. Anything more than this should be moved into either a stocks and shares ISA or a non-ISA account.

Alternatively, portfolio ISAs allow you to hold multiple ISA products within a cash ISA wrapper. You can still only have one active cash ISA but it can be made up of one or more standard cash ISA products, including a Help to Buy: ISA. With a portfolio ISA, you can save into a cash ISA and a Help to Buy: ISA at the same time. The standard cash ISA and Help to Buy: ISA allowance limits will still apply.

- See more at: http://www.helptobuy.gov.uk/help-to-buy-isa/faq#sthash.eERwwucP.dpuf

Rblackburn

I have the same question as others but cannot find the answer! If I open a help to buy isa in Dec 2015 and continue to put money in it for the next 4 years, can I open another cash isa in April 2016? Halifax told me I could not open other cash isas in later tax years if I continued to pay into my help to buy isa!

colsten

Rblackburn wrote: »

I have the same question as others but cannot find the answer! If I open a help to buy isa in Dec 2015 and continue to put money in it for the next 4 years, can I open another cash isa in April 2016? Halifax told me I could not open other cash isas in later tax years if I continued to pay into my help to buy isa!

You haven't been looking very hard as this has been asked and answered before.

Halifax are right in that THEY won't allow you to do this. But that doesn't mean you cannot do it with one of the split ISA providers.

The real question you should ask yourself, however, is why you would want to have a regular cash ISA alongside your HTB ISA. There are many places where you can earn a lot more interest than in a regular cash ISA.

jamesdean1987

If i own a plot of land can i still open a HTB ISA?

colsten

No. Scheme rules: http://www.helptobuy.gov.uk/docs/default-source/default-document-library/151102---scheme-rules.pdf?sfvrsn=2

ziggycj

Hi,

I opened a Help 2 Buy ISA but have just been told that I can't transfer my previous ISAs (2014-15) as the amount will go over the £1200. I thought with H2B you could still transfer your old ISAs.

Also, If you can transfer old ISAs will you get 4% interest on everything or is it only the H2B amount?

Thanks