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Help To Buy ISA & Lifetime ISA

Dan15l
Posts: 9 Forumite
I NEED HELP!
Can I open a 'Help To Buy ISA & 'Lifetime ISA' in the same Tax Year ?
I have been told different answers from different banks and financial advice sites.
'Barclays' have told me I cannot do this in the same tax year, whereas 'Skipton' and 'MoneyBox' have told me yes I can do this in the same tax year so I am unsure what to do :mad:
I have also asked other companies such as 'The Money Advice Company' where they have told me 'yes you can do this' and ' I am unsure why Barclays are saying this'.
As you can understand I would like to keep both open and use the 'Lifetime ISA' for a property and the 'Help To Buy ISA' for General savings or a future purchase.
I understand that the government only allow you to use the 25% bonus for one ISA towards a property new.
If using the 'Lifetime ISA' for anything other than a property can result in a penalty, however in my case, it will DEFINITELY be put towards a new property.
I have explained my reasoning behind the question below:
So I recently opened a 'Help To Buy ISA' with Barclays in August.
I plan on purchasing a property in the future and I am a first-time buyer
After looking around, including the very in-depth guide on MSE, I believed that their '2.58%' AER Variable would be the best choice.
(Including the Government 25% bonus max of £3,000)
So far I have put £1200 in the first month and ready to put the next installment of £200 in, the possible maximum equating to £3400 in year one.
Max Deposit: £1200 In first month + £200 every month.
HOWEVER . . .
After doing alot more research and speaking to current first-time buyers, I believe that the best option for first-time buyers is actually the 'Lifetime ISA', I have been looking on the MSE website and believe that 'MoneyBox' are currently doing the best rate at 1.4%.
Now the reason I believe that the 'Lifetime ISA' option is a better is because you get 25% Government bonus EVERY YEAR, with the maximum deposit being £4000 per tax year, this means an additional £1000 every year towards your property.
Max Deposit: £4000 before the tax year ends, no monthly caps.
In comparison, in my first year with the maximum deposit of '£3400' with the 'Help To Buy ISA' scheme is only £88 interest over the tax year.
Understandably the '2.58%' AER V at Barclays HTB' is greater than the '1.4% AER V Lifetime ISA' and that the Barclays total interest will increase year after year,however I still believe that the 'Lifetime ISA' is a better option as you can attain more money towards a property/mortgage deposit in a shorter period of time i.e £1000 a year :j
Can I open a 'Help To Buy ISA & 'Lifetime ISA' in the same Tax Year ?
I have been told different answers from different banks and financial advice sites.
'Barclays' have told me I cannot do this in the same tax year, whereas 'Skipton' and 'MoneyBox' have told me yes I can do this in the same tax year so I am unsure what to do :mad:
I have also asked other companies such as 'The Money Advice Company' where they have told me 'yes you can do this' and ' I am unsure why Barclays are saying this'.
As you can understand I would like to keep both open and use the 'Lifetime ISA' for a property and the 'Help To Buy ISA' for General savings or a future purchase.
I understand that the government only allow you to use the 25% bonus for one ISA towards a property new.
If using the 'Lifetime ISA' for anything other than a property can result in a penalty, however in my case, it will DEFINITELY be put towards a new property.
I have explained my reasoning behind the question below:
So I recently opened a 'Help To Buy ISA' with Barclays in August.
I plan on purchasing a property in the future and I am a first-time buyer
After looking around, including the very in-depth guide on MSE, I believed that their '2.58%' AER Variable would be the best choice.
(Including the Government 25% bonus max of £3,000)
So far I have put £1200 in the first month and ready to put the next installment of £200 in, the possible maximum equating to £3400 in year one.
Max Deposit: £1200 In first month + £200 every month.
HOWEVER . . .
After doing alot more research and speaking to current first-time buyers, I believe that the best option for first-time buyers is actually the 'Lifetime ISA', I have been looking on the MSE website and believe that 'MoneyBox' are currently doing the best rate at 1.4%.
Now the reason I believe that the 'Lifetime ISA' option is a better is because you get 25% Government bonus EVERY YEAR, with the maximum deposit being £4000 per tax year, this means an additional £1000 every year towards your property.
Max Deposit: £4000 before the tax year ends, no monthly caps.
In comparison, in my first year with the maximum deposit of '£3400' with the 'Help To Buy ISA' scheme is only £88 interest over the tax year.
Understandably the '2.58%' AER V at Barclays HTB' is greater than the '1.4% AER V Lifetime ISA' and that the Barclays total interest will increase year after year,however I still believe that the 'Lifetime ISA' is a better option as you can attain more money towards a property/mortgage deposit in a shorter period of time i.e £1000 a year :j
Kind Regards,
Daniel
Daniel
0
Comments
-
You can pay into both a HTB ISA and a LISA in the same tax year, as explained at https://www.gov.uk/individual-savings-accounts:There are 4 types of ISA:
- cash ISAs
- stocks and shares ISAs
- innovative finance ISAs
- Lifetime ISAs
Ignore anything Barclays tell you on this subject, they're renowned for not knowing what they're talking about.
As you've identified, a popular option for first-time buyers is to use the LISA for the property purchase (given the higher annual allowance earning the bonus), leaving the HTB as a generic savings account that pays better interest than vanilla ones, although you need to close it once you've bought your property and have become ineligible in doing so.0 -
Thanks for your help 'eskbanker', much appreciated.Kind Regards,
Daniel0
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