Help to buy ISA - Can I withdraw money?

eng1991

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You may also find our fully researched Help to buy ISA guide helpful.

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Basically, I have a help to buy ISA, opened it with Halifax at the start of the month with a deposit of £1000 and the standing order has been set up for the 15th of every month to take £200.

As I am a bit short of money for the next week or 10 days, could I transfer money from this halifax account into my hsbc account which I use for everyday buys? If I do transfer the money and then put the same amount back when I get paid in 7/10 days, would that money still be used towards the help to buy bit of the ISA?

This would be the easiest way for me to get money and then simply put it back when I get paid but I don't want to jeopardise the help to buy ISA potential.

Replies are appreciated.

colsten

You can withdraw money whenever you like but you cannot deposit more than £200 a month (and £1,000 in the first month). Also, with Halifax the month ends on the 25th.

eng1991

Thanks for the reply. So basically the standing order I set up which goes out on the 15th for £200 is the only money allowed into the account?

Flobberchops

Yes, that's basically it.

There are no penalties for withdrawing cash from a HTB ISA but it's essentially a missed opportunity - aside from the original £1000 lump sum you can never deposit more than £200 per month, so it's a sum that will grow fairly slowly. Depending on how big your withdrawal is, that could represent months or even years of catching-up to get back to the same balance (and interest and bonus-earning potential).

If the landlord's knocking on your door and the fridge is bare then obviously do what you have to, but in an ideal world it's best not to dip into your HTB cash if possible.

eng1991

Thanks a lot for the replies. Sorted it now, never going to withdraw from there.