Trouble opening a H2B ISA with an ISA already open

pumpkinman

OK, so my cash ISA is closed now but I just called HSBC and even now they refuse to open a H2B ISA for me because it has to be in a separate tax year, even though I paid in nothing this year. Very strange... Does anyone know any other bank I can definitely open one with ASAP? I would happily switch after this experience.

masonic

pumpkinman wrote: »

OK, so my cash ISA is closed now but I just called HSBC and even now they refuse to open a H2B ISA for me because it has to be in a separate tax year, even though I paid in nothing this year. Very strange... Does anyone know any other bank I can definitely open one with ASAP? I would happily switch after this experience.

Just go with any provider. Top rates can be found here: https://www.moneysavingexpert.com/savings/help-to-buy-ISA/

If you bank with one of the top providers it will probably be faster.

I would start a formal complaint against HSBC by the way. Totally unacceptable behaviour to (a) make you close your ISA unnecessarily and (b) refuse to let you open the HTB ISA even after closing it.

jvccoke

My son has had similar problems. He has a cash isa with Barclays and he opened a help to buy one not knowing you couldn’t have both. They closed it and sent his money back.
He currently has about £1300 in his cash isa. He has paid in more this tax year but has withdrawn some. So is the amount he’s classed as paying in £1300 or the higher total that has been paid in?
How can he open a help to buy isa if he’s paid into a cash isa already?
I can see NatWest and Nationwide allow you to split. I think I read you can transfer cash isa over to htb isa.
He’s going to have to apply online as he’s running out of time and won’t get to a branch.
Any help would be great, thanks.

masonic

jvccoke wrote: »

My son has had similar problems. He has a cash isa with Barclays and he opened a help to buy one not knowing you couldn’t have both. They closed it and sent his money back.
He currently has about £1300 in his cash isa. He has paid in more this tax year but has withdrawn some. So is the amount he’s classed as paying in £1300 or the higher total that has been paid in?
How can he open a help to buy isa if he’s paid into a cash isa already?
I can see NatWest and Nationwide allow you to split. I think I read you can transfer cash isa over to htb isa.
He’s going to have to apply online as he’s running out of time and won’t get to a branch.
Any help would be great, thanks.

Barclays were correct to close the HTB ISA.

Is the cash ISA flexible? If so, he could withdraw all of the money he has paid in this tax year and then open a HTB ISA. If not, he is too late to do anything that would allow him to open and fund a HTB ISA, but he could open one and not pay anything into it until the next tax year.

jvccoke

Thanks. His cash isa is flexible with Barclays so he could withdraw everything and open an htb isa?
Would Barclays allow this if he did this or would he need to go elsewhere for his htb?

pumpkinman

masonic wrote: »

Just go with any provider. Top rates can be found here: https://www.moneysavingexpert.com/savings/help-to-buy-ISA/

If you bank with one of the top providers it will probably be faster.

I would start a formal complaint against HSBC by the way. Totally unacceptable behaviour to (a) make you close your ISA unnecessarily and (b) refuse to let you open the HTB ISA even after closing it.

Thanks. I just applied online with Nationwide. This is what it said at the end:


Once your account is open we'll send you a welcome letter and you'll be able to view the account in the Internet Bank or Banking app. This should take about 7 working days. We're handling a lot applications at the moment though, so sorry in advance if it takes us a little longer to process yours. Your account will start earning interest from today.


Am I right in thinking I have to pay something in before the deadline, or am I past the finish post already?


And good idea about a formal complaint. They seemed to do everything they could to thwart me. It doesn't make sense...

masonic

jvccoke wrote: »

Thanks. His cash isa is flexible with Barclays so he could withdraw everything and open an htb isa?
Would Barclays allow this if he did this or would he need to go elsewhere for his htb?

He only needs to withdraw everything paid in during the current tax year (so his allowance goes back up to £20,000 if Barclays shows this).

Given the discussion in this thread about Natwest not understanding the rules, I wouldn't be confident about Barclays being much better, so opening elsewhere would be the safest option if you don't want to run the risk of the account being closed.

masonic

pumpkinman wrote: »

Thanks. I just applied online with Nationwide. This is what it said at the end:

Once your account is open we'll send you a welcome letter and you'll be able to view the account in the Internet Bank or Banking app. This should take about 7 working days. We're handling a lot applications at the moment though, so sorry in advance if it takes us a little longer to process yours. Your account will start earning interest from today.

Am I right in thinking I have to pay something in before the deadline, or am I past the finish post already?

That suggests the account is open, so you are past the finish post. It is likely you won't get an opportunity to make your first deposit during November, but you've beaten the deadline, so will be able to start contributing from December.

1CeCe

Hi,
I have a very similar issue to the OP, currently hold a cash ISA (HSBC..terrible interest rate).. opened this summer have paid ~£400 into it via monthly deposits, but would like to open a HTB ISA. ..(v.late I know)
Is this possible? Do I need to swtich or transfer my current ISA? Or close the account altogether?
Or go for a 'split ISA'?

*Headsup*
Have called my bank and they have said it is NOT possible to switch or transfer my current ISA to a HTB ISA with *them*, although other banks may/can do this!

Any help is appreciated!

masonic

1CeCe wrote: »

Hi,
I have a very similar issue to the OP, currently hold a cash ISA (HSBC..terrible interest rate).. opened this summer have paid ~£400 into it via monthly deposits, but would like to open a HTB ISA. ..(v.late I know)
Is this possible? Do I need to swtich or transfer my current ISA? Or close the account altogether?
Or go for a 'split ISA'?

*Headsup*
Have called my bank and they have said it is NOT possible to switch or transfer my current ISA to a HTB ISA with *them*, although other banks may/can do this!

Any help is appreciated!

Your easiest option would be to open a HTB ISA elsewhere with zero initial balance and transfer the £400 into it. Once received, you can top up to the total £1200 permitted in the first month.