Help to Buy ISA

Merlinisold

My son is currently 17yrs, but doesn't have £1200 to pay into the Help to Buy ISA. Can I deposit that figure for him and then withdraw it immediately, leaving him to pay in a lesser regular amount (is there a minimum monthly amount?). Or does the first deposit of £1200 have to remain invested?

eskbanker

There is no minimum monthly (or initial) amount set at scheme level so what you describe is pointless and unnecessary - he can open one now and just pay in a pound or a penny if he so chooses, unless there's a higher figure required by the Ts & Cs of whichever specific institution he goes with, which he should obviously familiarise himself with anyway (at least the product summary box)....

Merlinisold

I was looking at the Nationwide and that implies you have to deposit £1200 within the first calendar month?! I will look at others instead, thanks.

wjr4

You do not have to deposit £1,200 in the first month but it is best to as you are only able to put in £200 pm after. There is no point putting in £1200 for him and then withdrawing it. Why doesn't he open a Lifetime ISA?

webjaved

Would a Lifetime ISA not be better?

eskbanker

Merlinisold wrote: »

I was looking at the Nationwide and that implies you have to deposit £1200 within the first calendar month?! I will look at others instead, thanks.

You're misreading it - under the scheme rules there is an allowance of up to £1,000 for a one-off initial upfront payment plus £200 per month thereafter, so Nationwide are simply making the point that for those wishing to benefit from that extra allowance, it needs to be paid in in the month of opening, after which it's too late. The same applies to other institutions too, but Nationwide's wording could perhaps be a bit clearer, although I've highlighted the key statement in bold below:

• You can open a Help to Buy: ISA with a zero balance when you complete the online application form on nationwide.co.uk or in branch
• If you open your account via the Internet Bank or Banking app, you’ll need to make a minimum initial deposit of £1. However, please note that your initial month’s deposit allowance of up to £1,200 must be completed within the first calendar month of opening
• Pay in up to £1,200 in the calendar month in which you make your first deposit into the account.
• Pay in up to £200 each subsequent month.