Maximum amount in Help to Buy - should I move it?

ksheard

Hi all,

I have the maximum amount in a help to buy ISA I've saved over the years, but I don't have any intention of buying a house in the next year, although I may do in the next 3 years or so. Do you think it's wise to move it into a savings account, as the help to buy only has 1% interest? Or are the other benefits worth keeping it there?

Very confused on the best steps to take with all the news on the interest rates rising!

Thank you,
Katie

masonic

The 25% bonus upon use towards completion on a property would be the main reason to keep it.

You could consider whether moving to a Lifetime ISA might be beneficial (higher property price limit etc). It would take 3 tax years to move it all across.

Bridlington1

If you've no intention of buying a house in the next year then one thing you could do is open a top paying easy access account and move about a years worth of H2B ISA contributions into it (£2400). Then over the next year move £200/mth back into the H2B ISA. You would still get the full bonus on it if you bought somewhere after a year but you'd also get a bit more interest in the process (assuming that the top paying easy access accounts pay more than the H2B ISA for the next year)