HTB ISA Contributions

edited 22 June 2018 at 3:43PM in ISAs & Tax-free Savings
2 replies 748 views
AimHighAimHigh Forumite
130 Posts
edited 22 June 2018 at 3:43PM in ISAs & Tax-free Savings
Afternoon all,

I transferred my Halifax HTB ISA into a LISA earlier in the year and left £1 in there with the intention of capitalising on the higher interest rate of the account (I appreciate it is going to drop to a lower rate in August but it's still a better rate than I'm getting elsewhere).

My HTB ISA is showing as inactive, which is fair as I haven't contributed to it since pre-transfer. It does say 'you didn't pay any new money into this ISA in the previous tax year. You can still take out and replace money, but you will need to reactivate you ISA before paying in new money' which is interesting given I maxed it out last tax year..

Anyway, when I go to reactivate it, it also gives me a message about being able to contribute an initial deposit of £1000 within the first 21 days which is pretty standard. So my question(s) are - given I already did this when I first opened the account and that money is now in my LISA, can I still contribute £1200 into my HTB if I reactivated it now? And the second question is just seeking confirmation that I'm not missing anything and I can just reactivate this HTB ISA for the sake of getting the better interest and subsequently close it when appropriate (without the bonus but + interest)?

AH

Replies

  • AlexlandAlexland Forumite
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    If the HTB ISA has only been partially transfered to a LISA then you are still limited to £200 per month contributions. It might be showing as 'inactive' as you have made no contributions this year (?) not because the account had been closed. As such I don't know why their softwre is suggesting you can make an initial contribution again - sounds like a bug in the code. You can partially or fully withdraw from a HTB ISA at any time without penalty.


    Alex.
  • AimHighAimHigh Forumite
    130 Posts
    Alexland wrote: »
    If the HTB ISA has only been partially transfered to a LISA then you are still limited to £200 per month contributions. It might be showing as 'inactive' as you have made no contributions this year (?) not because the account had been closed. As such I don't know why their softwre is suggesting you can make an initial contribution again - sounds like a bug in the code. You can partially or fully withdraw from a HTB ISA at any time without penalty.


    Alex.

    Thanks Alex, I didn't think it felt right so thanks for confirming.
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