Help to Buy ISA guide

jimjames · 1 December 2015 at 7:39PM

riccirus wrote: »

therefore i would lose out on a lot of tax free eligible savings.

Yes but that's doing you a favour. Not point chasing an account because it's tax free yet pays a tiny rate in comparison to a taxed account especially after the rules change next year.

Purplepennies · 1 December 2015 at 7:43PM

MJD wrote: »

Have I understood this correctly?

I am aware that I cannot have a Cash ISA and a HTB-ISA in the same tax year (yes I know that the Nationwide are doing a split ISA but that aside).
I have paid about £3000 into a cash ISA this tax year. If I withdraw that £3000 from the account so that I no longer have a current tax year's cash ISA and do not pay any more into that account does this then qualify me to open a HTB ISA?

I am in a similar situation where my partner and I pay monthly into my isa, does this mean we both we would have to get split ISA S? It's still a little confusing.

MissC84 · 1 December 2015 at 7:54PM

I currently save £1000pcm and am hoping this will go up to about £1200 a month in February next year. I'm looking at starting the house buying process in March 2016. I want to open a Help to Buy ISA for the £200pcm but am unsure where to save the other £800pcm. It's currently all just in a normal savings account so literally get pence in interest.
Should I get the Nationwide split ISA and where should I save the rest?
Any advice much appreciated

thank you

fever84 · 1 December 2015 at 8:29PM

I went into nationwide today and opened a 2% help to buy isa and a 1.4% cash isa. Feel feel to ask any questions. This was the best choice for me because I already had a lot of savings in a low interest isa

I opened the the help to buy isa with £1 which I have till the end of December to transfer up to £1199 and I closed my old cash isa and transferred it into the new cash ISA

colsten · 1 December 2015 at 8:30PM

MissC84 wrote: »

I currently save £1000pcm and am hoping this will go up to about £1200 a month in February next year. I'm looking at starting the house buying process in March 2016. I want to open a Help to Buy ISA for the £200pcm but am unsure where to save the other £800pcm. It's currently all just in a normal savings account so literally get pence in interest.
Should I get the Nationwide split ISA and where should I save the rest?
Any advice much appreciated thank you

Unless you don't care about the interest you can earn, the last place to put any of your money would be a non-HTB cash ISA. Check out the various interest paying current accounts, as well as the monthly savers which offer flexible withdrawals, such as the 5% ones offered by Nationwide and TSB etc.

colsten · 1 December 2015 at 8:36PM

riccirus wrote: »

It says you can only contribute to one cash isa in a tax year, does this mean that this will be the only cash isa you can out money in for as long as you have it. For example if I deposit £200 into a help to buy isa every month for 5 years i wont be able to put money into any other cash isa in those 5 years? therefore i would lose out on a lot of tax free eligible savings.

Why would you want to put any money into a non-HTB cash ISA when you can get between 3 and 6% in non-ISA accounts? Even if you had to pay tax on them, they are likely to beat those ISAs by a mile. And from April 2016, there's a good chance you won't have to pay any tax on any of them, unless you earn more than £1,000 interest a year (£500 if you are a HR tax payer, nil if you are on Advanced Rtae).

kelbel908 · 1 December 2015 at 8:53PM

Can someone help me please, if I go for the halifax htb isa that is offering 4% but buy a house in less than a year do I loose out on earning 4% tax free because this is paid annually?

Aj28 · 1 December 2015 at 8:55PM

Hi,

So after having read & watched as much as I can on this I am still confused...

I currently have not opened an ISA this tax year, yet have money in an old one (anticipating the HTB -ISA). With this amount I am unsure what to do...

From what I can make out it would be best to open a split HTB-ISA (e.g. - Nationwide) and any extra over the £200/pm I can save would first go into topping my allowance up and then into a regular saver of some sort?

Please if anyone can help it would be much appreciated.

Essex2014 · 1 December 2015 at 9:01PM

I transferred my cash ISA provider this year. I think i'm not eligible for HTD ISA this tax year?

jimjames · 1 December 2015 at 9:05PM

Aj28 wrote: »

Hi,

So after having read & watched as much as I can on this I am still confused...

I currently have not opened an ISA this tax year, yet have money in an old one (anticipating the HTB -ISA). With this amount I am unsure what to do...

From what I can make out it would be best to open a split HTB-ISA (e.g. - Nationwide) and any extra over the £200/pm I can save would first go into topping my allowance up and then into a regular saver of some sort?

Please if anyone can help it would be much appreciated.

Not sure which bits you've been reading but I can't see any reason why you'd want to have a split ISA with any part in a non HTB ISA when you can get such vastly better rates elsewhere.

Any extra over the £200 HTB amount can then just go into the non ISA account paying 5%.

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