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Does HTB ISA prevent opening another ISA?

PawelGK
PawelGK Posts: 9 Forumite
Third Anniversary Name Dropper First Post
edited 12 March 2024 pm31 9:20PM in ISAs & tax-free savings
Hello everyone. 

While I am aware that you can only open one cash ISA each tax year (assumption that the full 20k allowance is utilised) and/or contribute to one, I just want to double check something.

My partner opened HTB ISA few years ago and has been putting in max.£200 each month. This account will soon reach the maximum total saving balance of £12,000, on which bonus can be given.

If the last installment will be in April or May 2024, does it mean this will disqualify the person from opening another cash ISA for the tax year 24/25 and forcing to wait until April 2025?

Many thanks.


Comments

  • eskbanker
    eskbanker Posts: 35,331 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    No, the rules change next month so any number of ISAs can be funded concurrently subject only to the overall £20K annual contribution limit.
  • Thank you eksbanker. Have a good day.
  • ruth56_2
    ruth56_2 Posts: 64 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Just a quick pointer, assume you realise the restrictions of the HTB Isa? See my other post.....If you have time it would be better to transfer to a LISA and have a higher "purchase maximum" in a year's time.  Otherwise it is £250,000 which is very difficult in many areas rather than £450000 On a LISA!
  • ruth56_2 said:
    Just a quick pointer, assume you realise the restrictions of the HTB Isa? See my other post.....If you have time it would be better to transfer to a LISA and have a higher "purchase maximum" in a year's time.  Otherwise it is £250,000 which is very difficult in many areas rather than £450000 On a LISA!
    Thank you ruth56_2 but my partner is over 50 (and was over 40 when opening HTB ISA) plus it's unlikely savings will be actually used to buy a property in the UK.
  • eskbanker
    eskbanker Posts: 35,331 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    PawelGK said:
    it's unlikely savings will be actually used to buy a property in the UK.
    In which case why use a HTB ISA at all?  No harm in keeping options open until the situation is clear, but they're not very competitive if not being used for their intended purpose....
  • PawelGK said:
    ruth56_2 said:
    Just a quick pointer, assume you realise the restrictions of the HTB Isa? See my other post.....If you have time it would be better to transfer to a LISA and have a higher "purchase maximum" in a year's time.  Otherwise it is £250,000 which is very difficult in many areas rather than £450000 On a LISA!
    Thank you ruth56_2 but my partner is over 50 (and was over 40 when opening HTB ISA) plus it's unlikely savings will be actually used to buy a property in the UK.
    Then it would make sense to transfer the money to a cash ISA where rates are more competitive. Therea no advantages of a HTB ISA if you are not using for a first property and the interest rates are much lower than conventional cash ISAs. 
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