Transferring Help to Buy ISA from one provider to another

I recently applied to get my Help to Buy ISA transferred from Virgin Money to Yorkshire Building Society (thanks Martin for pointing out the nearly 5x higher interest rate!!). Got the account opened & the transfer was now with YBS to complete.

A few days later I get a text from Virgin saying the transfer couldn't be done due to an issue, contact your transfer office for more information. After enquiring I was told that as my balance was over £4000 I wouldn't be able to do the full transfer.

Now I'm aware there is a £4k limit when it comes to transferring ISAs but I wasn't aware this applies transferring a Help to Buy ISA? I certainly saw no mention of that on the site specifically for transferring a Help to Buy, nor did the YBS assistant make any mention of this. When I quoted how much I already had in my H2B they said this was fine to be transferred.

Help - have I missed something?

Comments

  • eskbanker
    eskbanker Posts: 29,908
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    The £4K limit only applies to putting money into a Lifetime ISA (whether by transfer from non-LISA or new money), but there is no limit to transfers between other ISA types, so someone has their wires crossed and needs to be challenged!
  • eskbanker said:
    The £4K limit only applies to putting money into a Lifetime ISA (whether by transfer from non-LISA or new money), but there is no limit to transfers between other ISA types, so someone has their wires crossed and needs to be challenged!
    Thanks - I knew I wasn't dreaming. I will go back to YBS and try again.

    Failing that - should a complaint be made to YBS or should I go further e.g. an ombudsman?
  • orange-juice
    orange-juice Posts: 187
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    edited 25 October 2023 at 5:02PM
    Are you sure your YBS account is a help to buy ISA? It's not listed on the main site -https://www.moneysavingexpert.com/savings/help-to-buy-isa/#bestbuys.

    I know they're both considered cash isas, but I wasn't sure whether you're able to transfer from the h2b to a regular one. Probably best speaking to YBS.

    I've transferred between h2b isas in full before without any issues.
  • eskbanker
    eskbanker Posts: 29,908
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    eskbanker said:
    The £4K limit only applies to putting money into a Lifetime ISA (whether by transfer from non-LISA or new money), but there is no limit to transfers between other ISA types, so someone has their wires crossed and needs to be challenged!
    Thanks - I knew I wasn't dreaming. I will go back to YBS and try again.

    Failing that - should a complaint be made to YBS or should I go further e.g. an ombudsman?
    Complaints about ISA transfers should be made to the receiving provider, who's responsible for the process - it's perhaps a bit harsh as YBS haven't done anything wrong, although they should have been the ones informing you of the failure.  So, if YBS don't sort it out, you can indeed raise a formal complaint - it's only after going through their complaints process that you'd be entitled to escalate to FOS, but it would take many months to resolve the matter via that route so gentle persuasion is probably more appropriate in the first instance!
  • said:
    Are you sure your YBS account is a help to buy ISA? It's not listed on the main site

    I know they're both considered cash isas, but I wasn't sure whether you're able to transfer from the h2b to a regular one. Probably best speaking to YBS.

    I've transferred between h2b isas in full before without any issues.
    I had noticed that mention of a H2B had vanished off their website & on MSE only very recently. A bit cheeky!! Definitely have a H2B open though.

    said:
    said:
    said:
    The £4K limit only applies to putting money into a Lifetime ISA (whether by transfer from non-LISA or new money), but there is no limit to transfers between other ISA types, so someone has their wires crossed and needs to be challenged!
    Thanks - I knew I wasn't dreaming. I will go back to YBS and try again.

    Failing that - should a complaint be made to YBS or should I go further e.g. an ombudsman?
    Complaints about ISA transfers should be made to the receiving provider, who's responsible for the process - it's perhaps a bit harsh as YBS haven't done anything wrong, although they should have been the ones informing you of the failure.  So, if YBS don't sort it out, you can indeed raise a formal complaint - it's only after going through their complaints process that you'd be entitled to escalate to FOS, but it would take many months to resolve the matter via that route so gentle persuasion is probably more appropriate in the first instance!
    Thanks - I will go through YBS in the first instance and take it from there!
  • katies_mum
    katies_mum Posts: 2,331
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    I am reading your postings with interest and hope you manage to get your account transferred soon. My daughter is also in the process of transferring her H2B Isa to YBS from Virgin.  YBS opened her new account last week and  yesterday she received a text to say `we have sent your cash Isa transfer request to Virgin and most Isa transfers take 7-15 working days but it could take longer, we will let you know if there is a delay`.  She is just waiting to hear that it has been done (money is currently still with Virgin).  I will let you know when she hears something.
  • katies_mum
    katies_mum Posts: 2,331
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    Hi, was wondering how you are getting on with the transfer of your Help to Buy Isa? I hope it is sorted.
    My daughters account with Virgin was closed yesterday, but the balance didn`t reach Yorkshire BS overnight as we thought it might.  After a call to them it seems it can take up to 5 days before its credited to her account with them.  Not really sure where her money is at the moment and of course she is losing interest.  
  • eskbanker
    eskbanker Posts: 29,908
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    Hi, was wondering how you are getting on with the transfer of your Help to Buy Isa? I hope it is sorted.
    My daughters account with Virgin was closed yesterday, but the balance didn`t reach Yorkshire BS overnight as we thought it might.  After a call to them it seems it can take up to 5 days before its credited to her account with them.  Not really sure where her money is at the moment and of course she is losing interest.  
    Unlikely - cash ISA transfers will normally be processed to ensure that interest is paid by the receiving provider from the day after it was last paid by the ceding one, even if the way the online balance is displayed doesn't necessarily imply that.
  • katies_mum
    katies_mum Posts: 2,331
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    Thank you that is really good to know, when she queried that at our local branch they said they didn`t know and she would have to take that up as a query when the money arrived.  Appreciate the information thanks again
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