ISA clarification questions

MistyJac

My daughter has a help to buy ISA which has £200 per month paid into which comes to £2400 per year.  On reading up it seems that she cannot open a Cash ISA with the rest of her allowance for the year.  Is that correct, as obviously she would have the potential to save a further £17,600?  What is the best thing for her to do if this is the case? 

Many thanks

xylophone

See https://www.moneysavingexpert.com/savings/help-to-buy-isa/

MistyJac

Thank you.  I have seen that but am still a bit confused! Guessing the rest of the allowance can't be used?

eskbanker

The good news is that she can pay into another cash ISA alongside a HTB ISA.

The bad news is that this only applies if both accounts are with the same provider from the list of those who support 'split ISAs':

https://www.moneysavingexpert.com/savings/best-cash-isa/#accordion-content-620297425-6

She could however pay the rest of her 2022/23 allowance into a S&S ISA, leave it uninvested, and then transfer it (as prior year money) into a cash ISA after 6 April....

MistyJac

Thank you for your reply.

I'll tell her to contact the Nationwide to see if it's a split ISA.