Split isa

Hi I opened a htb isa in January 2016 with nationwide. I was intending to do the split isa deal but I forgot about it as there was some
Problems with the htb isa.

Anyways I am I able to get the split isa now or not. I haven’t put any money in since opening the htb isa. Nationwide haven’t got any idea what I’m talking about.

Thanks
Mortgage free wannabe 

Actual mortgage stating amount £75,150

Overpayment start date 1/3/23.

Starting balance £66,565.45

Current balance £63,787.16

Comments

  • eskbanker
    eskbanker Posts: 29,855
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    If you haven't paid into any cash ISA (including HTB) during 2017/18 then you're free to open and/or pay into one with whoever you choose, although if you want to open another HTB then you'd need to transfer the Nationwide one into it.

    What makes you want to pay into a non-HTB cash ISA anyway, they're poor value for money at the moment?
  • Alexland
    Alexland Posts: 9,639
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    If you speak to anyone at Nationwide who doesn't understand point them to this webpage:

    https://www.nationwide.co.uk/products/savings/help-to-buy-isa/features-and-benefits

    "You can contribute to another Nationwide cash ISA product at the same time, as long as you don't exceed your total ISA tax-free savings allowance each year."

    Assuming the HTB meets your needs why wouldn't you continue to contribute if you can afford it? Unless a Lifetime ISA more meets your needs...

    Alex
  • Sncjw
    Sncjw Posts: 3,487
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    I was looking at the nation wide 5% saved but need to have the account where I put £750 a month in . I mean I could do that move wages from Halifax to nationwide/ so do I need to keep the 750 in there or Can I move it back over
    Mortgage free wannabe 

    Actual mortgage stating amount £75,150

    Overpayment start date 1/3/23.

    Starting balance £66,565.45

    Current balance £63,787.16

  • Alexland
    Alexland Posts: 9,639
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    edited 22 December 2017 at 12:30PM
    Not sure which Nationwide account requires you to pay £750 per month in?

    The FlexAccount has no minimum and the FlexDirect account (5% on £2,500 balance for a year) requires £1000 per month from an external source however you are free to move £250 into your 5% regular saver and move £750 back out to your main current account.

    Although the 5% interest is attractive the 25% government bonus on your HTB ISA or LISA would be more attractive to most first time buyers.

    Alex
  • Sncjw
    Sncjw Posts: 3,487
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    Yes I know I am keeping the htb but it’s just when someone said savings account have better rates than a cash isa.
    Mortgage free wannabe 

    Actual mortgage stating amount £75,150

    Overpayment start date 1/3/23.

    Starting balance £66,565.45

    Current balance £63,787.16

  • Alexland
    Alexland Posts: 9,639
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    Yes cash accounts (particularly regular savers) do tend to have better rates than cash ISAs. Most people can use their personal savings allowance to avoid paying tax anyway.

    Are you sure it's not worth resuming contributions to your HTB ISA or transfering it into a LISA for a bigger government bonus?
  • Sncjw
    Sncjw Posts: 3,487
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    Right so thinking of getting that current account flex direct. Move £1000 into that account then move move money into the Flexclusive account. For 5% on savings as well. Can I then move the remaining in Flex direct back to Halifax? To start the process again
    Mortgage free wannabe 

    Actual mortgage stating amount £75,150

    Overpayment start date 1/3/23.

    Starting balance £66,565.45

    Current balance £63,787.16

  • Sncjw
    Sncjw Posts: 3,487
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    Your not getting it. I have the htb but I can only put £200 a month into it. I want to save some more money so I want to do the 5% deal.
    Mortgage free wannabe 

    Actual mortgage stating amount £75,150

    Overpayment start date 1/3/23.

    Starting balance £66,565.45

    Current balance £63,787.16

  • Alexland
    Alexland Posts: 9,639
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    edited 22 December 2017 at 12:48PM
    1) Yes you can move the balance back to your main bank account as I said in post 5. However the FlexDirect does pay 5% on balances up to £2500 for the first year in addition to offering the 5% regular saver on up to £250 per month.

    2) from your post 1 then I understood you had stopped making contributions to your HTB ISA. Even if you want to save more each month then I am suggesting you consider resuming HTB contributions to get the government bonus and then put whatever is leftover each month into regular savers, etc.

    Alternatively consider transfering the HTB ISA into a LISA where you can add £4k per tax year for a £1k bonus. You can only use either a HTB or a LISA to buy a house not both. With LISA you get a bigger bonus by the interest rate on cash is lower so if you are not buying for 5+ years you might consider a stocks and shares LISA.

    Alex
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