Contribute more than 12k to Help to Buy ISA with Barclays

the_learner

Hi, I have recently reached a total contribution of more then 12k to my Help to Buy ISA with Barclays. The Government will pay 25% up to 3k so 12k is the max contribution to get the bonus.
But since Barclays pays 1.25% on this ISA does it make sense for me to keep contributing £200/month to this? Will Barclays pay that interest rate on the whole amount I have contributed even if higher than the 12k that the Government considers as max contribution? 

xylophone

https://www.barclays.co.uk/savings/isas/help-to-buy-isa/

george4064

Yes and Yes.

12k isnt the max contribution, it’s the maximum amount you’ll be able to get the Gov 25% bonus on. So you will continue to earn interest on the entire balance, even if it exceeds 12k.

eskbanker

You might wish to consider using a Lifetime ISA instead of a HTB ISA if you're unlikely to be buying for a few more years, as it offers greater bonus-earning potential....