HTB ISA and 12k limit

bugfriendlygardener

Is it 12k on contributions , or reaching 12k including interest ?. Govt site says savings, but Telegraph Money wrote in Dec 2015 that how quickly the limit was reached would depend on interest rates......

eskbanker

Not sure which government sites you're looking at but the definitive ones clarify that the bonus is calculated based on the total balance, including any interest.

https://www.helptobuy.gov.uk/help-to-buy-isa/faq/#5e9a24ea-e1f7-648f-8ce9-ff0000ad17aa:

Will my interest on my savings count towards my government bonus?

Yes. Your government bonus will be calculated based on the amount of money you have in your account when you close it. This includes both the money you have saved, and any interest you have earned on that money. The maximum government bonus is £3,000.

https://www.helptobuy.gov.uk/documents/2015/12/scheme-rules.pdf/:

7.4 (B) A Help to Buy: ISA Holder shall be entitled to a Bonus, in respect of their closed Help to Buy: ISA, of 25% of the Closing Balance of that Help to Buy: ISA, subject always to:
(i) a minimum Bonus of £400 (meaning that a Help to Buy: ISA with a Closing Balance of less than £1,600 shall not be eligible for a Bonus);
and
(ii) a maximum Bonus of £3,000 (meaning that the amount by which the Closing Balance of a Help to Buy: ISA exceeds £12,000 shall not be eligible for a Bonus).

As per that last sentence, there isn't a £12K limit as such, that's just the maximum amount that'll earn the 25% bonus.

bugfriendlygardener

thanks. My daughter has no plans to buy in the near future so look like we can treat like a decent paying normal ISA for the time being, depending on what happens to the rates when these end. Halifax are still paying 2.25% for early adopters.