Close and reopen help to buy ISA?

longshanks88

Hi there, I have had a Halifax help to buy ISA since Jan 2016 so two years now. I am wondering if it's better to close and reopen it or if it's actually worse because then the interest earned on it thus far won't be included in the calculation of whatever bonus the govt gives me, correct?

Also, back when I opened it, the Halifax deal was the best one (I was online account management as well). Is that still the case or can anyone recommend better options for maximum interest? Thanks!

PS: last point - does opening a new HTB ISA result in credit checks on credit record?

Neil_Jones

If your H2B ISA pays 3.5%, which it probably will from Jan 16, nothing else in any form will beat that rate at the moment. Keep it I would rather than closing it. The interest should be included in the government bonus as and when the account is closed.

longshanks88

Brilliant thanks! Checked and it does pay 3.5% currently so that's good. I will keep that and have opened the first direct saver which gives 5% as well so I think the two combined give me the best possible savings options!

eskbanker

Neil_Jones wrote: »

Keep it I would rather than closing it.

Good advice from Yoda there

One other thing for OP to consider - a Lifetime ISA may be a better bet than a HTB if you're not going to be buying within the next year. The interest rate of the only available cash product (Skipton) is poor but you can put £4K in per tax year and thereby get 25% bonus on a higher amount, which in many cases will give a better overall return on your money, unless you're not planning to buy for many years....