HTB ISA Bonus Question

marliepanda

I daren't ask my solicitor due to their scary T&C about their time/costs on emails and phone calls, eek!

So I have a HTB ISA. I know once I get the completion date I go in and ask for the closing certificate to claim the bonus.

My question is, does it simply matter what the amount is on that date that the bonus gets paid on, it doesnt have to be in for a certain length of time? i'm going to put in my £200 for this month, but what if we complete on say October 15th. if I pay in £200 on 1st October, and then get the certificate on say, the 2nd/3rd, will I still get an extra £50? Seems a bit too good to be true, and Ive trawled a few HTB FAQ sites and cant find anything that mentions this type of thing...

Rusty_Shackleton

The bonus is 25% of your balance when you close the ISA. I was surprised to see my partner and I both got the bonus on the interest that was sat in the account as well (both that had been paid previously, and on the interest the banks paid in upon closing).

You can pay £200 in every calendar month, whatever the balance is when you close it is what the bonus is paid on.

Be aware that some banks will only send closing statement by post, (3-5 working days) and your solicitor will need extra time to get the bonus confirmed. If you were completing on 15 October I very much doubt you could wait until 1/10 to close your ISA.

In fact, you almost certainly need your bonus confirmed before you can exchange contracts - until your solicitor has the closing statement they wouldn't know for sure you've got all the funds available you need...

System

You go to the provider and get your closing statement, which shows how much you have in the account (including interest). The bonus you get will be 25% of that amount, regardless of how long the money has been in the account. So - yes, you should get the £50 on your October payment as long as you've made it before you get your statement.

That's my understanding, anyway. I haven't actually been through the process myself yet. About it seeming too good to be true, to be honest the whole scheme feels that way to me anyway!

System

Rusty_Shackleton wrote: »

In fact, you almost certainly need your bonus confirmed before you can exchange contracts - until your solicitor has the closing statement they wouldn't know for sure you've got all the funds available you need...

This isn't always the case. I know there's some kind of expedited process for people who need to exchange and complete close together, but I'm not sure exactly how it works. I think the solicitor can use a recent statement instead of needing the closing statement. I didn't read the information in any detail, as I'm planning on a nice long gap between exchange and completion

marliepanda

Rusty_Shackleton wrote: »

The bonus is 25% of your balance when you close the ISA. I was surprised to see my partner and I both got the bonus on the interest that was sat in the account as well (both that had been paid previously, and on the interest the banks paid in upon closing).

You can pay £200 in every calendar month, whatever the balance is when you close it is what the bonus is paid on.

Be aware that some banks will only send closing statement by post, (3-5 working days) and your solicitor will need extra time to get the bonus confirmed. If you were completing on 15 October I very much doubt you could wait until 1/10 to close your ISA.

In fact, you almost certainly need your bonus confirmed before you can exchange contracts - until your solicitor has the closing statement they wouldn't know for sure you've got all the funds available you need...

Luckily I'm not having to rely on my HTB ISA or bonus for the deposit, its just going to help reimburse it. Anyway, Ive done September and hopefully Ill have some more guidance from my solicitor to see what the October plan could be...