H2B or wait for LISA?

MallyGirl

but you can't get 4% now with a new HTB account - like the OP would be opening. Best regional seems to be 3% (Cumbria) and 2.53% is best national rate.

aj23_2

Ed-1 wrote: »

The reason why you can't pay into both a H2B ISA and another cash ISA in the same year is because you can't pay into 2 cash ISAs in the same year.

https://www.halifax.co.uk/isas/cash-isas/help-to-buy-isa/

Remember, the Help to Buy: ISA is a cash ISA and you can only add contributions into one cash ISA in a tax year.

Unless you go with Nationwide or Aldermore for example who allow ISA splits. You're also allowed to contribute to a HTB and a LISA in the same tax year.

aj23_2

Yes this is correct. I think Halifax have cut their the rate in all previous issues now too. I'm surprised I'm still getting 4% with Santander to be honest, not that I'm complaining. :beer:

MallyGirl

CricketLady wrote: »

Hi Mally girl,

Did you know that children of 16 can get the Santander 5% regular saver? This is 200pounds per month and of course because it is an "adult" one you can keep opening a new one each year for as long as you want! Good luck!

:beer:

only showing as 3% now - 5% is for 123 world or Santander select and she only has a mini 123

ValiantSon

MallyGirl wrote: »

only showing as 3% now - 5% is for 123 world or Santander select and she only has a mini 123

The 123 Mini is a 123 World account, so your daughter can get the 5% rate.

https://www.santander.co.uk/uk/123-customers

MallyGirl

ah - thanks. I had no idea - I don't bank with them.

eskbanker

aj23 wrote: »

Yes.

I correct myself to a balance of £12k in both deposited by the saver will generate a bonus of £3k on both. HTB just takes a bit longer to reach £12k. But after three years, it's only a difference of about £800 in terms of the bonus achievable.

Thanks for clarifying what you meant - it's probably also worth pointing out to anyone in the situation of choosing between opening a HTB or a LISA right now (i.e. near the end of the tax year) that if they started saving before 5 April (and maxing accounts as quickly as possible) it would only take until April next year to reach £12K in a LISA, whereas it wouldn't get to that figure until well over three years later (late 2022) in a HTB, so it's actually a pretty significant difference in these circumstances....

MallyGirl

Very true in general but OP is talking about an under 18 so the LISA is not an option yet

aj23_2

Provided you have £12k to pay in £4k at the end of 2017/18, during 2018/19 and the start of 2019/20 tax years. Most people will not be maxing this out. But this is achieveable if you have funds available for lump deposits.

eskbanker

aj23 wrote: »

Provided you have £12k to pay in £4k at the end of 2017/18, during 2018/19 and the start of 2019/20 tax years. Most people will not be maxing this out. But this is achieveable if you have funds available for lump deposits.

Indeed - my observation was in the context of your post about how long it takes to reach £12K when maxing out either a HTB or a LISA, obviously it would take longer to reach that figure via either product if not maxing it out!