Help to buy interest rate once matured

Jackfrew17

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.

eskbanker

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

Ed-1

Jackfrew17 said:

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.

Jackfrew17

Great help! Thank you so much!