Partial HTB ISA Transfer to LISA

Accomplice

Hello,

I have a Halifax HTB ISA with c. £5,100 @ 3.5% and a Skipton Cash LISA with £1 @ 0.5%. Is it possible to do a partial transfer of the HTB ISA into the LISA? I'm aware it will depend on both the HTB and LISA providers, but I can't find any concrete information online about it.

I was thinking I could contribute to my HTB ISA until early February 2018 (at which point it will have c. £6,100), then transfer all of the FY15/16 and FY16/17 years contributions (c. £4,100) into the LISA. I could then top-up the LISA with £3,999 before the end of the FY17/18 .

In effect, this would leave me with a regular savings account paying 3.5% variable and my LISA with £6,100, in order to maximise the bonus payment and HTB ISA interest. I'm aware that if/when I bought as house using the LISA I would have to close the HTB ISA as I would no longer be eligible for it under the scheme rules.

I know Skipton will accept transfers in (although they have a T&C that says they retain the right to stop this at any time) but the only information I've found from Halifax is from the following document, which doesn't make things any clearer

Google search: "Cash ISA account terms and conditions Halifax" as new accounts can't post links.

Basically, I want to keep my Help to Buy ISA open and transfer some funds to the LISA, is it possible? Can anyone provide any guidance or experience?

Many thanks.

Neil_Jones

Your post is near enough a direct copy of this one on Reddit, so presumable you're the same person:
https://www.reddit.com/r/UKPersonalFinance/comments/6grijx/htb_isa_partial_transfer_to_lifetime_isa/

Basically a one-off transfer now doesn't eat into your allowance for the LISA. A second one will. You can hold both but you can't claim the first time buyer bonus on both, it has to be one or the other.

Remember H2B is effectively easy-access ISA. Nothing else pays 3.5%. Skipton only pays 0.5%. After next April LISA will carry 25% withdrawal penalty for anything other than retirement or buying a house, but it also attracts a 25% bonus monthly after next April. H2B ISA with Halifax is annually on year of opening but will by now be well into three digit interest territory.