CASH ISAs

Phaelok

Hi everyone,

Please could someone on this forum clarify the following for me...

I have a HTB ISA with Halifax @ 4% and would like to open a separate cash isa with the same/another provider.

Having checked the Natwest site it states

'If you make a payment for a tax year into your Cash ISA, you can’t make any payments for that tax year into any other cash ISA except for a NatWest Help to Buy: ISA'.

So long as I do NOT exceed the annual ISA limit, can I pay into both in the same tax year? Does Halifax offer this service or do I need to move this to another provider?

Thanks.

Puddylove

I have a Halifax HTB ISA too - from the beginning - and the rate is now 3.5%.
I also wanted to open another cash ISA, but came to the conclusion it is not allowed.
You can have a S & S ISA concurrently though.

Flobberchops

Yep.

The rate is now 3.5%.

A HTB ISA is a cash ISA, and presumably you're continuing to fund it by standing order, meaning you can't open, or pay into, any other cash ISA in the same tax year.

If you want to stay in cash perhaps consider some of the usual current accounts and regular savers. Or if you want to maximise your ISA allowance, perhaps how's the time to look into stocks and shares. Alternatively, hold on and see what Cash Lifetime ISA products are announced.

Neil_Jones

The rate was dropped to 3.5% in December last year.
http://www.moneysavingexpert.com/news/savings/2016/10/all-halifax-help-to-buy-isa-customers-to-be-hit-with-reduction-later-this-year

The Halifax 3.5% H2B ISA rate wipes the floor with everything else H2B wise available at the moment, and most other other products in point of fact and I'm of the view it's worth hanging onto for the interest rate, albeit at the limits of £200 a month.

But yes, to answer the original question, H2B is a Cash Isa so you can't pay into another cash ISA this tax year. The other types yes.

The Natwest option you're probably looking at is the Portfolio or Spilt ISA. These effectively give you a hybrid set up that you can pay into an ISA and H2B up to a total combined limit of £20k, however the interest you get on these sort of products isn't particularly great.