Dormant ISA and Help-To-Buy ISA

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
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daisyyychaindaisyyychain Forumite
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edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
I have a Santander ISA which has about £11k in it. I stopped paying into this a few years ago but never sorted out moving it to a better ISA.

I opened a Help-To-Buy ISA with Halifax as soon as this was available with the initial deposit of save the max £200 per month, this balance is approx £7k.

Last year I got a letter saying the Santander ISA was to become dormant due to inactivity. I went to the bank to put £1.00 in to keep it active, but the cashier told me that as I now have a Help-To-Buy ISA which I transfer every month I wasn’t able to do the £1.00 transaction. So I just let the account become dormant as she said all I need to do to access the money is go into branch with identification.

I’ve now had a letter from Halifax informing that the interest rate is going down and so I’m considering transferring the Help-To-Buy ISA to a better interest Help-To-Buy ISA, possibly Barclays.

Can I transfer both ISAs within the same tax year?

Also, what type of ISA would be recommended for my dormant savings?

In addition to the above, I also have a standard saving account with Yorkshire Bank where I try to save £300.00 per month. This currently has approx £5k in it. I will withdraw from this occasionally if I need some extra cash. Is there anything better I should consider for this account?

thanks

Replies

  • eskbankereskbanker Forumite
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    You can transfer your Halifax HTB ISA to another HTB ISA and it would make sense to do this if it improves your interest rate.

    For your Santander ISA, you could transfer this to another cash ISA as well, without breaching the rule about only paying new money into one ISA of each type in any given tax year.

    However, non-HTB cash ISAs are generally pretty poor value at the moment so in your shoes I'd research options at https://www.moneysavingexpert.com/savings/which-saving-account, as there are current accounts and regular savings accounts that are likely to give you a better return than a standard cash ISA.
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