Help to Buy ISA advice needed....

Dr_Axolotl

I have a Help To Buy ISA, which has been building up for the last few years, however I now live with my partner in a house that she owns. It is unlikely we will be buying another home together in the near future for which I could claim the HtB ISA 25% bonus. Can I keep my HtB ISA just ticking over, even if I know I may never claim the 25% bonus (although I still count as a first time buyer and so could potentially use it at some point)? It seems wise to keep paying money into it, as it has a much higher rate of interest than my normal Cash ISA, with the remainder of my annual ISA allowance potentially being put into a LISA and/or a Stocks and Shares ISA. It looks like the HtB ISA bonus needs to be claimed by 2030, can I in theory keep paying in £200 a month until then, benefiting from the higher rate of interest (assuming it remains relativity high)? And what will happen to the account after 2030? Thanks

Oasis1

This is what I'm doing. I'll continue to contribute to my H2B ISA until I want to use the money, as the interest rate is 2.5% and I have almost £10k saved. I might use it towards buying a house but without the bonus. Instead, I'll use my LISA bonus.


Just remember that if you reach £12k in your H2B, your bonus for a house will never be more than £3k. So if you're saving for a good few years (3+) and will likely save more than £12k, open a LISA so you can access a bigger bonus - but only if you're definitely planning to buy at some point given the penalty! :money: