HTB ISA and being over 40

ojandhugo

Hi All,

I need some advice on what options are available to me.

I'm now 43yo and have £10k in a Barclays HTB ISA at 2%. It's now looking very unlikely that I'll ever be in a position to be a first time buyer so can I move the cash into another ISA which pays a better rate as I thought they were only available to people ages 18-39? If I am outside the age range to open a new ISA what are my options? It seems to me the only available option is a fixed term savings account?

Any comments would be appreciated.

Thanks.

eskbanker

ojandhugo said:

can I move the cash into another ISA which pays a better rate as I thought they were only available to people ages 18-39?

No, it's only Lifetime ISAs that cease to be available after 39, so you can open any other adult ISA product.

masonic

At just 2%, it would probably pay to transfer it into a cash ISA if you are not foreseeing a time when you could use it for a property purchase. As above, there is no problem in you keeping it until 2030 (when the scheme closes) if you thought you would be in a position to claim the bonus before then.

ojandhugo

Thanks for the responses. I thought it was odd that no ISA’s were available to the over 40s! Makes it all a bit clearer.

I’ll leave the HTB ISA alone for another year for now and open a new ISA then.

Rich2808

ojandhugo said:

Thanks for the responses. I thought it was odd that no ISA’s were available to the over 40s! Makes it all a bit clearer.

I’ll leave the HTB ISA alone for another year for now and open a new ISA then.

Its only the lifetime isa you need to be under 40 to open. You can't of course open a HTB isa now at any age - but you can transfer it.

HSBC are paying 2.5% and accept transfers - but you need to be a current account customer.

https://www.hsbc.co.uk/savings/products/help-to-buy-isa/

Newcastle BS pay 2.5% - but this is for locals only - so unless you live in the north east you can't open it.

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

Otherwise you will struggle to beat the 2% you get now for an HTB isa.

No harm keeping it open - as you remain eligible for a bonus of up to £2,500 if you are able to buy by 2030 under the limits (£450k in London and £250k elsewhere). You would only get an extra £100 a year interest on current cash isa instant access best buys on £10k.

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