Help to Buy ISA Interest Pay Out

eskbanker

ConsistentlyLost wrote: »

When someone has reached the £12000 after having deposited £200 every month since opening their help to buy isa, can they deposit more than £200 a month thereafter?

No - the only significance of the £12K is that once the balance exceeds that, no additional bonus entitlement accrues, but other than that everything stays the same, in terms of monthly contribution limit, interest paid, etc.

ConsistentlyLost

Many thanks for the quick reply eskbanker. One last question regarding that then. Would it be worth their while once they reach £12000, to stop depositing money into the help to buy isa and open a regular cash isa that pays a better rate of interest instead?
Kind regards
ConsistentlyLost

MDMD

ConsistentlyLost wrote: »

Many thanks for the quick reply eskbanker. One last question regarding that then. Would it be worth their while once they reach £12000, to stop depositing money into the help to buy isa and open a regular cash isa that pays a better rate of interest instead?
Kind regards
ConsistentlyLost

I think you will struggle to find any cash ISA that pays a better rate than a HTB

oli356

Yup....

£12k @ 2.5% (Natwest HTB) = £300
£20k @ 1.5% (best 2 year fixed rate) = £300

Will keep paying into my HTB for now ...

stehouk

tunde10 wrote: »

Your help to buy ISA is still getting 4.25% interest? I remember these rates were common when the product was first introduced but they all dropped their rates over the years.

The highest i could find last year before Help to Buy was closed was 2.5%. Mine is 2.25% from Halifax now but still very good with £11,700 in it.

I managed to get an Housing Association property after 8 years on waiting list so it is now unlikely i will be buying a property in the next 3 years as planned so i am going to open a LISA. But keep Help to Buy open whilst the rate is almost double easy access account. I will close this after this drops (expecting this at some point this year) and my LISA bonus overtakes Help to Buy.

If remember correctly it was originally 4% and Halifax offered the same rate, we chose Santander when it had only just been launched, after a year or so they reduced the rate for new business but wrote and told us our rate would remain at 4%, about a year later they wrote to us and told us the regular savers rate would be reducing but the htb isa rate was being increased to 4.25%, it has been the new rate for approx 2yrs now, knowing my luck i will get another letter tomorrow telling me it is being reduced down to 1%.:eek:

tunde10

stehouk wrote: »

If remember correctly it was originally 4% and Halifax offered the same rate, we chose Santander when it had only just been launched, after a year or so they reduced the rate for new business but wrote and told us our rate would remain at 4%, about a year later they wrote to us and told us the regular savers rate would be reducing but the htb isa rate was being increased to 4.25%, it has been the new rate for approx 2yrs now, knowing my luck i will get another letter tomorrow telling me it is being reduced down to 1%.:eek:

Wow, that's pretty lucky, 4.25% on £12k or so adds up quick. I chose Halifax when it was introduced and they reduced their rates pretty fast!

Hammer_Time

Hi all, I bought a house for more that £250000 outer London, so I couldn’t claim the 25% bonus. The ISA I have is the Halifax paying 2.25% interest. Can I still pay into this account or will I now have to close it. I have looked at the T&C but cannot find any information on this.

Alexland

No once you own property you are no longer eligible to hold any HTB ISA account. You are still eligible to hold a S&S Lifetime ISA if you want to collect 25% bonuses towards retirement from age 60?

badger09

In case anyone is interested, Santander HTB ISA Issue 1 & 123 HTB ISA Issue 1 both still paying 4.25% when historic rates were last published (July 2019)


https://www.santander.co.uk/assets/s3fs-public/documents/save0141_nov19h_04112019.pdf