Open Cash ISA in tax year after opening Help to Buy ISA

mememememe

Hi,

I know that if you open a Help to Buy ISA in one tax year then you can't open a Cash ISA in the same tax year. However, can you still open a new Cash ISA in a future tax year? Whilst still contributing the £200 a month to the Help to Buy ISA? I can't find any info saying I can't, but I can't find any info saying I can either... I've checked gov.uk, the money advice service etc.

Does anyone know of a official website saying whether I can do this?

Thanks in advance!

eskbanker

You can only pay into an HTB and another cash ISA in the same tax year if both are held by one of the small number of providers who offer a split ISA facility, see http://www.moneysavingexpert.com/savings/help-to-buy-ISA#cashisa or http://www.moneysavingexpert.com/savings/best-cash-isa#whatis (this has the list of such providers).

However, chances are you'd do far better to put your non-HTB money somewhere that'll earn far more interest than in a standard cash ISA, such as regular savers and/or current accounts, see http://www.moneysavingexpert.com/savings/which-saving-account

Plus

If you really want a cash ISA, one trick is to save up your money in non-ISA accounts until the end of the tax year, then pay it into a stocks and shares ISA in March. Pick one with no transfer out or monthly fees and don't invest it, just leave it in cash (which is risk-free). Once the new tax year has started in April it's become 'old' money with no restrictions, so transfer it out to new cash ISA(s) however you like.

colsten

Plus wrote: »

If you really want a cash ISA, one trick is to save up your money in non-ISA accounts until the end of the tax year, then pay it into a stocks and shares ISA in March. Pick one with no transfer out or monthly fees and don't invest it, just leave it in cash (which is risk-free). Once the new tax year has started in April it's become 'old' money with no restrictions, so transfer it out to new cash ISA(s) however you like.

You'd "trick" yourself out of all interest in the first year, and into mediocre interest in the next. Each to their own.

jimjames

colsten wrote: »

You'd "trick" yourself out of all interest in the first year, and into mediocre interest in the next. Each to their own.

Exactly. It would be useful if the OP could explain what they're trying to achieve with a cash ISA if they are buying a place.

mememememe

Thanks all of you. I will use the Help to Buy ISA to buy a house eventually, and I have some extra money to put somewhere (too much to all go into the Help to Buy ISA). Thanks eskbanker for mentioning the regular saver idea - I think I will do that and drip feed into it from an easy access savings account.