Nationwide Split ISA question

WLITC

How does the split ISA thing work? I opened (perhaps in haste) a HTB ISA in December with the Nationwide on the basis that they were one of the few places that enabled a split ISA and now the dust has settled after Christmas/NY I wanted to get the second ISA account sorted so that I could save more than the max £200 that the HTB account allows. However I called Nationwide today so ask about the process .. do I just open the 2nd ISA on line and do I need to ask for them to be linked etc. Anyway, she comes back and tells me I can only do the split ISA if I already had a Cash ISA before I opened the HTB ISA and I can't now open the Cash one. Is this correct?

le_loup

Yes.
If you have a HTB ISA, you cannot open a cash ISA in the same tax year.

colsten

le_loup wrote: »

Yes.
If you have a HTB ISA, you cannot open a cash ISA in the same tax year.

Yes you can, at a split ISA provider such as Nationwide.

Whether a normal cash ISA is a sensible thing to have for a prospective first time buyer is a totally different question. I would say the answer is an emphatic no, for the reasons that have been posted here hundreds of times.

WLITC

Okay thanks, so is the reason not to go with an IPA due to the low interest rates and that I would be better off with a high interest account?

le_loup

colsten wrote: »

Yes you can, at a split ISA provider such as Nationwide.

You are right. Sorry to confuse the issue.

eskbanker

WLITC wrote: »

Okay thanks, so is the reason not to go with an IPA due to the low interest rates and that I would be better off with a high interest account?

There's always a reason to go with an IPA!

Cash ISAs on the other hand are generally easily beaten for interest at the moment, and even more so after April, except for the Help To Buy version for those eligible for these.