Help To Buy ISA advise

Robertm

Hi
My daughter is not far off getting to the £12k savings in her Help to Buy ISA. As we all know this the maximum that she can get to where the 25% bonus will be applied when she purchases a property.
She wants to continue saving, but the rate on the help to buy is much lower than some of the other cash ISA's that are available at the moment. 
Can she take out another ISA and start saving to it, without jeopardising the 25% bonus in her help to buy ISA?

eskbanker

She can start paying into another ISA without jeopardising the HTB bonus, but crucially she can't pay into another cash ISA in the same tax year as contributing to the HTB ISA, so if she's been paying in since 6 April, she'd need to wait until 6 April 2024 before subscribing to a different cash ISA, unless both products are with one of the small number of providers who support split ISAs:

https://www.moneysavingexpert.com/savings/best-cash-isa/#accordion-content-620297425-5

Alternatively, she can save outside the ISA wrapper for the rest of this tax year, and contribute to an ISA next year.

When is she likely to buy her first property?  Many switched to the Lifetime ISA (with a higher bonus-earning potential) instead of HTB, but it becomes less effective to do that as time goes by....

Mr_blibby

you could also look to transfer it if you think it will be a while before it is used to buy a property - not many providers accept HTB transfers (YBS appear to have 4.8%, but can only be arranged in branch) If you think you will hit the £12k before end of the financial year, maybe move it once the annual interest has been paid and dont contribute further next FY, then you are free to continue in a new normal cash ISA next financial year, anywhere without the restrictions of it being one of the few split isa provider.

Rich2808

eskbanker said:

She can start paying into another ISA without jeopardising the HTB bonus, but crucially she can't pay into another cash ISA in the same tax year as contributing to the HTB ISA, so if she's been paying in since 6 April, she'd need to wait until 6 April 2024 before subscribing to a different cash ISA, unless both products are with one of the small number of providers who support split ISAs:

https://www.moneysavingexpert.com/savings/best-cash-isa/#accordion-content-620297425-5

Alternatively, she can save outside the ISA wrapper for the rest of this tax year, and contribute to an ISA next year.

When is she likely to buy her first property?  Many switched to the Lifetime ISA (with a higher bonus-earning potential) instead of HTB, but it becomes less effective to do that as time goes by....

It depends who her help to buy isa is with. If its with Nationwide - a portfolio isa provider and one of the largest HTB ISA providers - she can pay into multiple cash ISAs with Nationwide in year.

https://www.nationwide.co.uk/savings/help/transfer-isa/

This wouldn't apply if say her HTB isa were held with say Halifax or HSBC - as they aren't portfolio providers.

eskbanker

Rich2808 said:

eskbanker said:

She can start paying into another ISA without jeopardising the HTB bonus, but crucially she can't pay into another cash ISA in the same tax year as contributing to the HTB ISA, so if she's been paying in since 6 April, she'd need to wait until 6 April 2024 before subscribing to a different cash ISA, unless both products are with one of the small number of providers who support split ISAs:

https://www.moneysavingexpert.com/savings/best-cash-isa/#accordion-content-620297425-5

Alternatively, she can save outside the ISA wrapper for the rest of this tax year, and contribute to an ISA next year.

When is she likely to buy her first property?  Many switched to the Lifetime ISA (with a higher bonus-earning potential) instead of HTB, but it becomes less effective to do that as time goes by....

It depends who her help to buy isa is with. If its with Nationwide - a portfolio isa provider and one of the largest HTB ISA providers - she can pay into multiple cash ISAs with Nationwide in year.

https://www.nationwide.co.uk/savings/help/transfer-isa/

This wouldn't apply if say her HTB isa were held with say Halifax or HSBC - as they aren't portfolio providers.

Yes, hence the wording immediately after the bit you bolded!