ISA help

Hmjbarker1994

Hi Guys,

I already had an isa through hsbc I have been paying into this year but just opened a lifetime isa with skipton to save for a house, as I had to pay £1 to open it does that mean I have broken the rules for having 2 cash Isa accounts and does that mean I won't be able to pay £4000 before the April deadline to get the £1000 interest?

Help needed, thanks in advance.

Harry :mad:

Alexland

Welcome to the forum,

You are OK a Cash ISA is different to a Lifetime ISA held in cash see:

https://www.gov.uk/individual-savings-accounts

You just need to ensure you do not exceed the contribution limit of £4k on the LISA and £20k total across all ISA types.

Ps the £1k or 25% (if lower than £1k) is a bonus from HMRC not interest. You will get interest as normal from Skipton depending on how many days the money is in the account.

Hmjbarker1994

Ahh I see so in that case am I ok to keep paying into both??:j

Hmjbarker1994

Also thanks for the quick reply!:money:

Alexland

Yup you can keep contributing to both provided you observe the relevant contribution limits.

Cash ISAs are falling out of fashion for small amounts as most people can earn a better return outside an ISA wrapper using their personal savings allowance to avoid paying tax on interest.

jimjames

Hmjbarker1994 wrote: »

Ahh I see so in that case am I ok to keep paying into both??:j

You are. But a cash ISA is pretty pointless if you are saving for a house deposit, far better to just get the best rates available for your savings rather than worrying about it being a cash ISA