Multiple Help to Buy ISAs

beau6601

Hi,

Sorry if this questions has already been asked.

I opened a Help to Buy ISA with Nationwide in March under the impression that the account would start when I paid money in. I wanted to maximise my savings so have saved the £1,200 and went to pay in but was told I can't do this because I opened the account in March, my point was that as I had not put any funds in at all it shouldn't be active. To get around this I have booked an appointment with HSBC on Saturday to open an account and then will close with Nationwide. Does anybody know if I will be able to do this as I already opened one but have not put any money in?

Thanks

SmarterNotHarder

Ask Nationwide if you can close down the account and then reopen as you have not funded it? This will get around having to prove tto another bank that you haven't funded more than one.

isasmurf

You can only hold one HTB ISA at any time.

However, Nationwide are wrong. The HTB ISA Scheme rules state "A Help to Buy: ISA Holder shall be entitled to pay in aggregate up to the Maximum First Month Amount into their Help to Buy: ISA in the first month in which they pay any amounts into their Help to Buy: ISA."

(underline mine)

As far as HMRC are concerned an ISA is not opened until the first deposit has been made.

eskbanker

Although I can see how you're interpreting that wording, HMRC give a conflicting steer in their FAQ:

Do I have to make the deposit at a certain time during the month?
Your monthly allowance is per calendar month. This means, for example, that if you open your account on 28 March, you will have until the end of 31 March to make any deposits up to the first month’s limit of £1,200. You can then deposit up to £200 any time between 1 April and 30 April and in all following months.

and Nationwide's product terms mirror this:

please note that your initial month’s deposit allowance of up to £1,200 must be completed within the first calendar month of opening

isasmurf

eskbanker wrote: »

Although I can see how you're interpreting that wording, HMRC give a conflicting steer in their FAQ

It's not conflicting. An ISA is not open until
1. A valid application is received, and
2. A valid deposit is received.

The FAQ is saying if you make your first deposit on 28th March, you have up to 31st March to make further deposits up to the monthly limit.

eskbanker wrote: »

and Nationwide's product terms mirror this:

Actually, Nationwide's terms and conditions mirror my interpretation
In the first calendar month that you pay money into the account, you have up to the end of that month to deposit up to a maximum of £1,200. For example if you open an account with us on the 10 February, but make your first payment of £50 on the 10 March, you can pay in the balance of £1,150 until the 31 March.
http://www.nationwide.co.uk/support/support-articles/terms-and-conditions/help-to-buy-isa-terms-and-conditions

eskbanker

Ah OK, I see where you're coming from now - I was seeing 'opening an account' in the usual (loose) sense of having a numbered account created from a valid application, ahead of actually paying anything into it, but hadn't picked up that for ISAs it's the latter process that's formally considered to be opening the account. Every day's a school day!

Edit: OP was also using 'opened' in the same way as I understood it but as it's remained unfunded then, according to the HMRC definition of the term, OP has therefore never actually opened a HTB ISA with Nationwide and so should presumably be free to open one elsewhere without needing to 'close' anything?

isasmurf

eskbanker wrote: »

Edit: OP was also using 'opened' in the same way as I understood it but as it's remained unfunded then, according to the HMRC definition of the term, OP has therefore never actually opened a HTB ISA with Nationwide and so should presumably be free to open one elsewhere without needing to 'close' anything?

Yes, I suppose so. The OP should also make a complaint to Nationwide that preventing him from putting in the full first month amount in the first month he makes a deposit is not in accordance with their written terms and conditions. He could try again today or tomorrow to make a deposit in the NW account to get it in this month, quoting the terms and conditions if he has to.

Rich2808

Cant you just close the Nationwide account - and then reopen it the next day? You can do this on line.

http://www.moneysavingexpert.com/savings/help-to-buy-ISA

Nationwide do allow split isas - so you can invest in other cash isas with them in the same year - HSBC don't allow that.

Also there are other providers that pay higher rates - like Barclays (who allow on line applications http://www.barclays.co.uk/helptobuyisa) and if you live in their operating areas Penrith or Cumberland (Cumbria), Tipton (mainly West Midlands/Warwickshire), Vernon (Stockport area) or Darlington (Durham and Teesside) building societies.

http://www.moneysavingexpert.com/savings/help-to-buy-ISA