Help 2 Buy ISA - is the maximum £12,000 balance, or is it £12,000 deposit

dodomoney

Hi I've been depositing £200 every month since opening my Help 2 Buy ISA, and its been gathering interest, so its now up to £11,940.59.
I've obviously not DEPOSITED the entire amount of £11940.59 as it wouldn't end in £940.59, it would be an even number (if that makes sense).  For example without interest it would be something like £11,000.
My question then, is can I continue to make desposit until I've deposited £12000 of my own money.  Or would my final deposit be limited to £59.41 (which would take the total balance to an even £12,000)?

Thanks

eskbanker

You can pay in as much as you like, unless you have an unusual variant with a maximum balance.  The excess above £12K won't earn any government bonus but will still earn interest....

dodomoney

Sorry, yeah I meant whats the maximum deposit I can make for the Government bonus.  I'm finding it remarkably difficult to actually articulate my question in writing, it might be something I need to speak with someone in person about.
In a nutshell I want to know does the interest I have earned count a desposited funds?  As I haven't put that interest money in there.  And therefore my understanding was your first 12k of deposited money is eligible for the Government bonus.  I have not deposited 12k yet but because its been earning interest, there is nearly 12k in the account.
Let's say for arguments sake, I have deposited 11k into the Help2buy and the remaining £940.59 is interest.  Shouldn't I be allowed to deposit a further £1000 (£200 per month over 5 months) in order to fill my £12k deposit allowance?

redux

You're trying to overthink this, and eskbanker has already fully answered the question.

Put as much as you like in there, or until the end deadline for these accounts a few years away, even temporarily remove some if you want then carry on at up to £200 a month. It will carry on earning interest on all of it, and if you use it for a house the government bonus will be quarter of the balance, but a maximum of £3000.

margaretx9

redux said:

You're trying to overthink this, and eskbanker has already fully answered the question.

Put as much as you like in there, or until the end deadline for these accounts a few years away, even temporarily remove some if you want then carry on at up to £200 a month. It will carry on earning interest on all of it, and if you use it for a house the government bonus will be quarter of the balance, but a maximum of £3000.

Agreed - you can pay in up to November 2029 - another nine and a half years. And you have until November 2030 to claim the bonus.
Help to buy isas are still generally paying better rates than other instant access isas.