Help to Buy ISA

Chel12

Hi
I currently have a easy access cash isa with the Halifax that i pay into regularly. I'm also wanting a help to buy isa but, Halifax don't currently offer the split isa option. Can I have the cash isa with Halifax and a help to buy isa with another provider? Or do I have to move my current isa to a provider who allows spilt isas?
Thanks,
Chelsie

themanfromamarillo

You can only subscribe to one cash or help to buy ISA in a tax year. To open a HTB ISA you'd probably need to close the cash ISA if you paid into it this year.

However the rate you are getting at Halifax for your cash ISA is likely to be awful (1% or less). You could use £1000 from the cash ISA to start the HTB ISA and then look at putting the rest in a few high interest current accounts. OK you pay tax on those but even adjusting for that you'd get way more interest.

http://www.moneysavingexpert.com/banking/compare-best-bank-accounts

Futuristic

Chel12 wrote: »

Hi
I currently have a easy access cash isa with the Halifax that i pay into regularly. I'm also wanting a help to buy isa but, Halifax don't currently offer the split isa option. Can I have the cash isa with Halifax and a help to buy isa with another provider? Or do I have to move my current isa to a provider who allows spilt isas?
Thanks,
Chelsie

As you already made a deposit into a Cash ISA you are unable to open the HTB this tax year so you could move to another bitter 1% provider which allows splitting but I would not recommend that.

How much have you deposited into the ISA this year and what is the interest rate? It's likely a current account would better serve the funds.

I would withdraw your whole ISA account and put it in a interest-paying current account and wait for April to come by and open the Halifax HTB if it still is the best rate.

colsten

Futuristic wrote: »

As you already made a deposit into a Cash ISA you are unable to open the HTB this tax year

Afraid, what you said is not correct.

You can close the existing cash ISA and open an HTB ISA now, following the suggestions themanfromamarillo has made.

From_the_website_provided_by_the_Treasury wrote:

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.

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.

You are able to continue to save money into a stocks and shares ISA, even if you open a Help to Buy: ISA.

- See more at: http://www.helptobuy.gov.uk/help-to-buy-isa/faq#sthash.dSc2fe69.dpuf