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Is help to buy ISA part of cash ISA? Can I pay into both in one tax year?

what7
what7 Posts: 80 Forumite
Third Anniversary 10 Posts
edited 19 January 2021 at 2:23PM in ISAs & tax-free savings
I'm looking to top up the cash ISA to my annual limit, I have already deposit into help to buy ISA, can I still open and pay into a new cash ISA with another bank?

Comments

  • Ed-1
    Ed-1 Posts: 4,025 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    what7 said:
    I'm looking to top up the cash ISA to my annual limit, I have already deposit into help to buy ISA, can I still open and pay into a new cash ISA with another bank?
    You can only pay in to one cash ISA per tax year. Your Help to Buy ISA is indeed a cash ISA.
  • grumiofoundation
    grumiofoundation Posts: 3,051 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    Not if you have contributed to HTB ISA in this tax year (excluding caveat below*).

    *Some of the HTB providers offer a split ISA - which allows you to contribute to HTB and cash ISA in same wrapper with same provider.

    Depending on when you are looking at purchasing and how much you have saved in HTB ISA might be worth looking at lifetime ISA.
    https://www.moneysavingexpert.com/savings/lifetime-isas/ 


  • xylophone
    xylophone Posts: 45,996 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    https://www.moneysavingexpert.com/savings/help-to-buy-isa/

    The 12 Help to Buy ISA need-to-knows

  • eskbanker
    eskbanker Posts: 41,010 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    what7 said:
    I'm looking to top up the cash ISA to my annual limit, I have already deposit into help to buy ISA, can I still open and pay into a new cash ISA with another bank?
    As above, you can't pay into a cash ISA with another bank, but could fund one with the same bank if they offer the split ISA facility.

    However, if you're keen to use up your full 2020/21 ISA allowance, you could temporarily pay into a S&S ISA, without actually investing the money once there, and transfer it out to a cash ISA once the new tax year starts....
  • what7
    what7 Posts: 80 Forumite
    Third Anniversary 10 Posts

    I guess I will not be able to open a new cash ISA with my local building society this tax year.
    My current help to buy ISA with Halifax interest rate is dropping from 1.7% to 1% in March.
    So my best plan going forward is stop deposit into help to buy ISA in 2021 /22 and just keep it as a saving account at 1% (and use LISA for buying house) 
    And open this cash ISA with my local building society. (Let's hope the interest rate doesn't drop then) 
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