Help to buy interest rate once matured

Jackfrew17Jackfrew17 Forumite
2 Posts
First Post
MoneySaving Newbie
I have the max amount sitting in my help to buy ISA with Santander. Up until now they were paying roughly 3.6% which is obviously very good. However the interest rate has dropped down to below 0.5%. I don't plan on using my money for at least one more year.

I also have no other ISA.

So my question is: Can I move my help to buy ISA to a different bank with a better interest rate for the next year? In order to make some money on my £12000 which will be just sitting in the bank not getting touched. Many thanks.

And also will this affect my 25% bonus when I eventually buy a house?

Many thanks, Jack.

Replies

  • eskbankereskbanker Forumite
    18.7K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
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    Yes, you can transfer to another provider's HTB ISA without affecting your bonus, options are shown at https://www.moneysavingexpert.com/savings/help-to-buy-isa/#bestbuys
  • edited 22 November 2020 at 8:34PM
    Ed-1Ed-1 Forumite
    3.4K Posts
    Eighth Anniversary 1,000 Posts Name Dropper
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    edited 22 November 2020 at 8:34PM
    I have the max amount sitting in my help to buy ISA with Santander. Up until now they were paying roughly 3.6% which is obviously very good. However the interest rate has dropped down to below 0.5%. I don't plan on using my money for at least one more year.

    I also have no other ISA.

    So my question is: Can I move my help to buy ISA to a different bank with a better interest rate for the next year? In order to make some money on my £12000 which will be just sitting in the bank not getting touched. Many thanks.

    And also will this affect my 25% bonus when I eventually buy a house?

    Many thanks, Jack.
    Yes you can but there's only 2 options: HSBC (1.75% on up to £12k) or Halifax (1.7% with no limit).

    If you want to keep paying in to your H2B ISA then obviously Halifax is better as that pays interest on balances beyond £12k. You obviously only get the 25% bonus on the first £12k though.
  • Jackfrew17Jackfrew17 Forumite
    2 Posts
    First Post
    MoneySaving Newbie
    Great help! Thank you so much! 
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