Help to buy and cash ISA's

Tiffyerby

Hi

I want to open a Help to Buy ISA, probably with Halifax, this financial year (before 6th April). I also want to set up a cash ISA, in the next financial year (after 6th April) to put a bulk of money into which probably won't be with Halifax. I understand very clearly that I can't open more than 1 ISA per financial year, but is there anything stopping me from paying into separate cash and help to buy ISA's in the same financial year?

If I can't do this, my plan was to open a Help to Buy ISA now with Halifax, transfer my banking to santander, open their 123 current account, stick my lump sum in that account and receive the 3% AER interest on anything up to £20,000.

Any advice would be much appreciated

YorkshireBoy

Tiffyerby wrote: »

...is there anything stopping me from paying into separate cash and help to buy ISA's in the same financial year?

Only a few cash ISA providers allow this I believe. Nationwide is one such provider. Halifax is not.

Any advice would be much appreciated

If you're after best absolute return, then the Santander 123 and standard cash ISA combination is unlikely to be the best option. If you're prepared to say what a "bulk of money" is, then I'm sure better suggestions will follow.

masonic

You have it the wrong way round. You can open as many cash ISAs as you like, but can only pay into one per tax year (except in the case of a split-ISA provider).

You should probably consider this a blessing, because you are probably better off opening the 123 account and avoiding standard cash ISAs completely.

Tiffyerby

Ok so if opened a Help to Buy ISA now and then a cash ISA next financial year I wouldn't be able to make monthly payments into both?

My sense, from what you have said, is that I would be better off opening the Santander 123 account, whatever I do. But I don't want to miss out on the government help to buy scheme, and feel like I really should take advantage of this?

YorkshireBoy

Tiffyerby wrote: »

Ok so if opened a Help to Buy ISA now and then a cash ISA next financial year I wouldn't be able to make monthly payments into both?

You're asking the same question again! The answer is the same as you've already been given...twice. That would depend on the chosen provider and their T&Cs.

My sense, from what you have said, is that I would be better off opening the Santander 123 account...

Er...I believe I said EXACTLY the opposite!...if you wanted the best return on your cash.

But go ahead by all means.

Eco_Miser

• Help to Buy ISA - good idea.
• Other Cash ISA - not usually a good idea, why do you want one?
• Santander 123 - may be a good idea, but more interest on £20k is available using a combination of current and regular savings accounts paying up to 6%.
• See this list of such savers