Help to Buy and Cash ISA

moonbeamglitter

Hi,

Could anyone clarify for me whether I can keep my cash ISA as it is not from this tax year as well as open a HTB ISA?
I last paid into it in April 2014 and withdrew a little June 2015.

This is the only part I am slightly confused about.
Thanks in advance!

jimjames

Yes you can. However you may be better off closing it and putting it all in an account paying a far better rate. Really depends how much is in it.

moonbeamglitter

Thank you for replying.
I don't have very much in that ISA but have £10k in a HSBC savings account. I think I need to research my options and move it though. Do you have any suggestions as to what to do with the £10k? I am very green when it comes to savings and banking!

colsten

Look for the 5% "savings loophole" article on MSE, and also the regular savings accounts.

Look fast, as every day you leave your £10K in HSBC, you are losing money.

moonbeamglitter

colsten wrote: »

Look for the 5% "savings loophole" article on MSE, and also the regular savings accounts.

I have just had a quick look at the 5% savings loophole. How should I determine which savings account is the best for me? I currently earn £29k but will be earning £41k from January so should I be looking at the higher tax rates as I will be continuing to save on top of the HTB ISA. I find this all quite confusing so appreciate the advice.

george4064

I have already added new money to a S&S ISA this tax year and I still have plenty of ISA allowance left for this tax year.

Am I right in saying I can open up a HTB ISA this tax year as long as my overall (S&S ISA and HTB ISA) subscriptions stay within the overall £15,240 allowance?

colsten

moonbeamglitter wrote: »

I have just had a quick look at the 5% savings loophole. How should I determine which savings account is the best for me? I currently earn £29k but will be earning £41k from January so should I be looking at the higher tax rates as I will be continuing to save on top of the HTB ISA. I find this all quite confusing so appreciate the advice.

The "savings" account that's best is the one that pays the highest interest rate after any tax. That's always true regardless of how much your salary is.

That aside, with a £41K salary and £1K savings interest, you will still be a basic rate tax payer as you have a personal allowance, plus a savings interest allowance from the new tax year onwards.

colsten

george4064 wrote: »

I have already added new money to a S&S ISA this tax year and I still have plenty of ISA allowance left for this tax year.

Am I right in saying I can open up a HTB ISA this tax year as long as my overall (S&S ISA and HTB ISA) subscriptions stay within the overall £15,240 allowance?

Yep, sounds right to me.

(you are very brave, saving for a deposit and risking some of your money in investments)

moonbeamglitter

Ok that makes sense, thanks. I'll have to look into them all further and consult friends who are more financially astute than I am!