Help to Buy ISA and normal ISA

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Hope this question is clear:

I currently have a cash ISA with Post Office (never again, but that's a different story!) and have made my last deposit before the new tax year.

I am planning on opening Halifax Help to Buy ISA after Tuesday. I've read you can't have both open in the same tax year (unless you use a supplier that has split ISA's) so can I still have this old 2015/16 tax year ISA open at the same time as my new H2B 2016/17 tax year ISA?

My rate on my old ISA will drop so I'm not looking to keep it long term, I'm gonna take the £1200 out of it initially to put in my H2B ISA and then shop around to see how best to save the rest of my savings..

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  • colsten
    colsten Posts: 17,597 Forumite
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    You can have the old ISA open for as long as you like, you just can't make any new deposits into it from next tax year onwards if you want to have the HTB ISA (unless split ISA, lah-dee-dah)

    Best interest rates: http://forums.moneysavingexpert.com/showthread.php?t=5374614
  • PrettyFlower90
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    Thanks! Just wanted to make sure I was okay having the old one opened and didn't make any more deposits. Is it okay making withdrawals?
  • Flobberchops
    Flobberchops Posts: 1,279 Forumite
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    Of course! It would be pretty crummy if you weren't allowed to touch your cash. Your PO ISA can increase in value due to interest but no further *deposits* allowed if you're subscribing to a HTB this coming year.

    Your situation is pretty much identical to my own, btw. I'm opening a HTB ISA on the 6th and then drip-feeding it from my old Cash ISA until it's empty.
    : )
  • PrettyFlower90
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    Yeh that's my initial plan! I'm also gonna open one of the interest earning current accounts like tesco, BOS or Lloyd's to maximise on interest.. See if any good easy access ISAs come out in the new tax year too (although doubtful!)
  • badger09
    badger09 Posts: 11,247 Forumite
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    Thanks! Just wanted to make sure I was okay having the old one opened and didn't make any more deposits. Is it okay making withdrawals?

    If by 'okay' you mean 'allowed' the answer is yes:)
    If by 'okay' you mean 'easy' the answer is probably no:cool:

    Yeh that's my initial plan! I'm also gonna open one of the interest earning current accounts like tesco, BOS or Lloyd's to maximise on interest.. See if any good easy access ISAs come out in the new tax year too (although doubtful!)

    Don't hold your breath for better cash ISA rates. You will get a better return from the high interest current accounts - TSB, Nationwide, Lloyds etc and, in regular savers.

    Just a thought about your HTB ISA - Santander are also offering 4%, but have less rigid rules than Halifax, for paying in.

    As always, read the T&C before you sign up;)
  • PrettyFlower90
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    Thanks for this! I didn't actually know Santander hand one at 4%! I'll check that out! I always do read before I "buy" so to speak.
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