Keep Cash ISA or open Help to Buy ISA?

ShowUsTheMoney

I was referring to the fact that I have an existing cash isa that I haven't paid anything into at all this year, I just haven't bothered to close it . Therefore can I open one with the Halifax and pay in ? I was hoping to set one for my kids. Does it have to be in my name or their own as over 16 (just)

colsten

Rich2808 wrote: »

Whether you want a cash isa given the awful rates as a basic rate taxpayer is another matter - there are better options like regular savers and high interest current accounts.

whether you want the awful cash ISA rates is the Q. even as an HR tax payer.

ShowUsTheMoney

So what's the 4% people are referring too. Is that Halifax? I'm not a first time buyer but could I benefit from the 4% rate. If so, its worth considering?

Rich2808

ShowUsTheMoney wrote: »

So what's the 4% people are referring too. Is that Halifax? I'm not a first time buyer but could I benefit from the 4% rate. If so, its worth considering?

Yes the Halifax help to buy isa pays 4 per cent.

However you must be a first time buyer to be eligible to open one as per their website.

Rippel

jimjames wrote: »

If you withdraw all but £1200 from the ISAyou paid into this year you can then transfer to a HTB ISA

This sounds reasonable for me. I did phone Halifax and spoke to their savings team and presented my query to them. The chap did some looking into it and came up with this on the HMRC helptobuy site:

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 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.

This seems to imply it is possible to do just as you suggest.

PawelK

Rippel wrote: »

This sounds reasonable for me. I did phone Halifax and spoke to their savings team and presented my query to them. The chap did some looking into it and came up with this on the HMRC helptobuy site:



This seems to imply it is possible to do just as you suggest.

I need to find that quote on their website myself (professional skepticism ). If that is the case, I will transfer £1200 to htb in halifax and the remaining balance on cash isa will go to savings accounts and cash isa will be closed.

Thanks.

Rippel

I can't post a link with my membership level, but go to the help to buy gov uk site and go to help to buy ISA, then FAQ

PawelK

Rippel wrote: »

I can't post a link with my membership level, but go to the help to buy gov uk site and go to help to buy ISA, then FAQ

Found it! Thanks a lot. The anoying thing is that just before I went to Nationwide I asked in Halifax branch where a woman told me Id have to wait unitl April but this is clearly not the case. Now I will need to wait for my cash isa to be transferred into nationwide and once I open htb with them and transfer £1200 I will consider closing the remaining balance, put into savings accounts and htb will move again to halifax (or any other provider with the better rate). I currently estimated the difference between the two and assuming 1600 balance in six months between 2 and 4% rates gives a difference of aeound £16 so its a question whether its worth it.

jimjames

PawelK wrote: »

I need to find that quote on their website myself (professional skepticism ). If that is the case, I will transfer £1200 to htb in halifax and the remaining balance on cash isa will go to savings accounts and cash isa will be closed.

Thanks.

It's not any problem to do, ISA transfers are a long established procedure.

Ask " can I transfer a cash ISA to your HTB ISA? "
Answer will be yes.

Ask " can I transfer an ISA with more than £1200 to your HTB ISA " and if the answer is no then withdraw enough to only leave £1200 in it.