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Help To Buy vs Cash ISA.
splashproof
Posts: 152 Forumite
Assuming you fulfilled the criteria as a first time buyer.
Would I be right in thinking that you'd be better investing in a Santander Help to Buy ISA at 4% than a Cash ISA at 2% - regardless if you were intending to buy a home or not ?
Would I be right in thinking that you'd be better investing in a Santander Help to Buy ISA at 4% than a Cash ISA at 2% - regardless if you were intending to buy a home or not ?
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Comments
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On the face of it, it seems that you would be better with the Help to Buy option. The drawback is in the amount you can put in each year. With Help to buy you can put £3400 in on a drip basis, whereas with a Cash ISA you could deposit £15,400 in one drop. However, the regular cash ISA does not come with a government bonus of course.splashproof wrote: »Assuming you fulfilled the criteria as a first time buyer.
Would I be right in thinking that you'd be better investing in a Santander Help to Buy ISA at 4% than a Cash ISA at 2% - regardless if you were intending to buy a home or not ?0 -
My view is this - the question should be help to buy ISA or Stocks & Shares ISA?
If you are going for a house, then a help to buy ISA makes perfect sense as cash ISA rates are terrible. But, take note of the few providers that allow for a split ISA.
However, if you want potential big returns and perhaps quicker, then do homework on stocks and shares if you have enough capital to play with.0 -
S&S ISAs are investments. To be able to ride out any market downturns, your minimum investment period should be 5 years, preferably 10.
If you need your money within the next 5 years for a deposit, an S&S ISA would be very high risk.0 -
Echo the above. But, with the Help to Buy ISA, to get the maximum contribution, you have to be committed for 4 years (so it's still a long-term commitment) I believe as you are capped to how much you can invest each month.
Stocks & Shares ISAs are not to be taken too lightly, but you can help your cause by doing your homework and of course making sure you are comfortable with the risks.0 -
It is not a long term commitment because you can access the money at any time with no risk of losing capital.SimonBlake wrote: »Echo the above. But, with the Help to Buy ISA, to get the maximum contribution, you have to be committed for 4 years (so it's still a long-term commitment) I believe as you are capped to how much you can invest each month.0
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