ISA Transfer has gone wrong

moomin82

I completed an ISA Transfer request form via Skipton to instruct Halifax to transfer the balance from my Help to Buy ISA into my Lifetime ISA with Skipton. This is still in progress however I was surprised to see my HTB ISA had been closed. When I just asked Halifax on their chat why they did this, I only asked for a transfer, they told me I cannot have a HTB ISA and a Lifetime ISA open at the same time. I sent them a link to Money Advice Service and explained that you can. I said I would write a formal complaint. I believe they have made an error and now I cannot open another HTB ISA. It offered slightly better rates than other savings accounts so I was inclined to keep it.

moomin82

I plan to use the Lifetime ISA when buying my first home. I guess I will have to consider other more flexible savings accounts for additional savings.

[Deleted User]

Hello,

I transferred the balance of my H2B Halifax ISA last year and it remained open (with a £0 balance). My understanding is that you can have both - as H2B is specifically for buying a house whereas LISA is either towards a house or accessed after the age of 60. I was also informed that in order to close the H2B ISA, I'd need to go into the branch and fill out a specific form so it's surprising they've closed yours without this. Hope you manage to get it sorted!

masonic

They will need to reinstate it if the reason it was closed was the false notion that you can't have both.

moomin82

Halifax never ever answer their customer service number and on the chat they said they cannot reinstate it. I am writing a formal complaint... 

Alexland

If you requested a full transfer (assuming the amount within the HTB ISA and closing interest were below the LISA £4k allowance) it's pretty normal for the ISA manager to close the old empty account. Still if that's not what you wanted then sure complain and they might reinstate it.