H2B ISA Closure Query

pl187 · 27 February 2018 at 11:29AM

Hi Folks (I posted this in the savings forum but no response),

Myself and my partner both have a help to buy ISA and will be closing it in the next month prior to our completion date.

We will both have 6400 in the ISA in the next few weeks however we only require 5k in each so the 25% bonus takes our final amount up to £12,500.

We plan to withdraw the 1400 from each and then go in to branch to complete the closure. Are there any issues doing this? Also, the interest that has accumulated until the point of closure, is this just added on to the ISA balance or is it possible to withdraw this amount also?

Thanks

whatdoyouthink... · 27 February 2018 at 1:43PM

Why do you want to take it out? leave it in there and get the 25% bonus for it. Once you've been into the branch and closed the account you'll be transferring the money (probably) into your own bank account anyway. Taking £1400 each from the ISAs 'loses' you £700 in total...

ashe · 27 February 2018 at 1:48PM

Yeah as above absolutely don't withdraw the money.

pl187 · 28 February 2018 at 12:49PM

Would this not mean we would need to use the full ISA savings + the bonus for our deposit? Or could we keep some of the saving in our bank account once its been transferred and use the full bonus + the remaining amount to make up our deposit?

Tiglet2 · 28 February 2018 at 1:03PM

Once you close your HTB ISA account the money you have saved will be transferred into your bank account so you can use the money however you want. The bonus is claimed from the government by your solicitor on completion though so this part will not be available at the time you pay your deposit (on exchange).

pl187 · 28 February 2018 at 1:13PM

Ah ok, thats great. I thought the bonus remained in the closed ISA account and the full amount went towards deposit alongside the gov bonus. Thanks for your help.