HTB ISA & New Cash ISA for Transfer

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
1 reply 271 views
apgaapga Forumite
627 Posts
Eighth Anniversary 500 Posts
✭✭
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
I hope someone can help.
My daughter has a HTB ISA (she adds £200/month, has about £6500 & is getting just over 3% interest). She can't afford to put in more than £200/month - is it worth her considering a LISA?
She also has an old Cash ISA which gets a very poor interest. She would like to open a new Cash ISA to transfer this into (no additional funds would be added) - is this allowed?
Thank you

Replies

  • eskbankereskbanker Forumite
    18.7K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭
    The short answer to your question is yes, it is possible to open a cash ISA for transferring prior year money into, while paying into a HTB ISA.

    However, whether it's the most sensible thing to do is another story, as cash ISA rates are poor across the board.

    One option may be to open a LISA, transfer the pre-2017/18 HTB money and top it up with another £4K from the other ISA before the end of this tax year and maybe another £4K after 6 April, which would get a decent wedge of bonus, keeping the HTB open solely for the interest rather than the bonus. This depends on how much is in the non-HTB ISA though....
This discussion has been closed.
Latest MSE News and Guides

Energy price cap could be extended beyond 2023

New plans have just been announced by the Government

MSE News

Cheap contents insurance for tenants

DON'T assume your landlord covers you

MSE Guides

Summer sizzlers round-up

Incl £2ish sun cream & £1.50 disposable BBQs

MSE Deals