Help to Buy ISA guide

MattGill

The Halifax ISA says it will only pay out interest accrued annually, while Virgin will pay out monthly. If I opened the Halifax account (for the higher interest rate), but another account with a better interest rate appeared on the market within 12 months, would I get interest up until the date that I move accounts? The same question applies if Halifax reduced the variable interest rate to below the best in the market?

Davey2C

MattGill wrote: »

The Halifax ISA says it will only pay out interest accrued annually, while Virgin will pay out monthly. If I opened the Halifax account (for the higher interest rate), but another account with a better interest rate appeared on the market within 12 months, would I get interest up until the date that I move accounts? The same question applies if Halifax reduced the variable interest rate to below the best in the market?

As I understand they should calculate the interest daily and pay it as they state (Halifax annually or Virgin monthly), they should also pay any outstanding interest upon closing the account; though if you want to be 100% sure, check the terms and conditions on the account.

emilymachin

I have a cash ISA that was set up a good few years ago, I have added money to it continuously throughout this tax year.

If I set up a help to buy ISA, can I still add money to the cash ISA or will I need to stop using it/close it down?

Thanks.

Davey2C

angelofinnocence33 wrote: »

Hi
I think I know the answer but want to check! I have just shy of £15000 in a cash isa only opened a few month ago (so in this tax year), it's money for a deposit. Am I best to close this & then open a help to buy ISA with Halifax and keep the remainder in an instant access savings (which I already have with a 1.50% interest rate) OR open a split Isa with Nationwide? Thank you!

Hello, don't close the account, transfer the money out of it into a HTB ISA (or HTB ISA+Cash ISA in single ISA wrapper, sounds a little confusing :mad:) so it doesn't lose it's Tax Free status. You would need to transfer all of the money out of the other Cash ISA so it will close, to ensure that you are within the rules of only opening/actively subscribing to one Cash ISA (Cash ISA within one wrapper) per tax year

I am in a similar situation to you, I think I will open a Nationwide HTB Cash ISA + Cash ISA (under a single Cash ISA wrapper). Then next Tax year, transfer the HTB Cash ISA into a Halifax one paying 4% (if it is still a higher rate) and then transfer the Nationwide Cash ISA to another Cash ISA which pays a higher rate of interest ie. Coventry Building Society 2.4% AER, and then maximise any other savings over the £200 a month into accounts paying a higher rate (as suggested by other frugal posters)
I can't link as I'm a newbie, but look at MSE "Best Regular Savings Accounts", up to 6%.

Also if you're transferring previous years Cash ISA's into a new Cash ISA, it isn't classed as opening a new account as it is still under a previous years wrapper. So this should be allowable for people with HTB Cash ISA's; community please correct me if I'm wrong, or give me a clap if I'm right.
I can't link as I'm a newbie, but look at MSE "cash-isa-transfers" :T

Here is avery good Guide from MSE on how to start saving money and building for the future :money:
I can't link as I'm a newbie, but look at MSE "How to Start Saving", get max interest from every penny you've got.

Now it's time to put these savings to work and grab a :beer:

aoc_2

I am planning on geting a split ISA and will transfer across money from a previous year's Cash ISA. If I then struggle to save the £200 per month to fill the HTB ISA, can I use the other side of the split ISA to fund the HTB ISA to ensure I am putting the max in each month?

Thanks.

floppity

What happens if you end up buying a property for more than £250k (outside London) ? Is this limit likely to be increased to keep pace with rising property prices?

colsten

floppity wrote: »

What happens if you end up buying a property for more than £250k (outside London) ? Is this limit likely to be increased to keep pace with rising property prices?

You won't be entitled to the bonus.

Rules are here: http://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work

colsten

aoc wrote: »

I am planning on geting a split ISA and will transfer across money from a previous year's Cash ISA. If I then struggle to save the £200 per month to fill the HTB ISA, can I use the other side of the split ISA to fund the HTB ISA to ensure I am putting the max in each month?

You might be. You need to ask your provider. They are very likely to have special rules and processes for transferring money between ISAs. Also, some might require the HTB deposit to be made by SO. You need to read your T&Cs.

Davey2C

emilymachin wrote: »

I have a cash ISA that was set up a good few years ago, I have added money to it continuously throughout this tax year.

If I set up a help to buy ISA, can I still add money to the cash ISA or will I need to stop using it/close it down?

Thanks.

Your previous years contributions can stay put or you can transfer them into a higher paying Cash ISA (or other higher interest non ISA account.)

Davey2C wrote: »

If you're transferring previous years Cash ISA's into a new Cash ISA, it isn't classed as opening a new account as it is still under a previous years wrapper. So this should be allowable for people with HTB Cash ISA's; community please correct me if I'm wrong, or give me a clap if I'm right.
I can't link as I'm a newbie, but look at MSE "cash-isa-transfers" :T

But you will have to transfer your current years subscriptions from that Cash ISA if you want to open a HTB ISA.

Davey2C wrote: »

Hello, don't close the account, transfer the money out of it into a HTB ISA (or HTB ISA+Cash ISA in single ISA wrapper, sounds a little confusing :mad:) so it doesn't lose it's Tax Free status. You would need to transfer all of the money out of the other Cash ISA so it will close, to ensure that you are within the rules of only opening/actively subscribing to one Cash ISA (Cash ISA within one wrapper) per tax year

theonlytrueblonde

Hi All

I can't seem to find the answer to this anywhere so hoping you can help. I moved house earlier in the year and to change my address on my old ISA I had to re-subscribe in this tax year. However, I have not paid anything into this ISA. As I have not paid any money, does that mean I should be ok to open a HTB ISA?

Thanks!