Can i have a HTB ISA when i have opened a LISA
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Jazz11
Posts: 14 Forumite
I opened a Lifetime ISA one month ago and have paid in £5 at opening. Is there any way i can open a Help To Buy ISA before the deadline?
Nationwide advised i could not open a HTB ISA with them as i have already paid into a LISA this tax year. However, they didn't seem too confident about this.
Any ideas anyone?
Thanks
Nationwide advised i could not open a HTB ISA with them as i have already paid into a LISA this tax year. However, they didn't seem too confident about this.
Any ideas anyone?
Thanks
0
Comments
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Nationwide were talking rubbish - you are allowed to fund a HTB ISA while concurrently paying into a Lifetime ISA, as they're different types.
https://www.gov.uk/individual-savings-accounts:There are 4 types of ISA:- cash ISAs [including HTB]
- stocks and shares ISAs
- innovative finance ISAs
- Lifetime ISAs
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Nationwide were talking rubbish - you are allowed to fund a HTB ISA while concurrently paying into a Lifetime ISA, as they're different types.
Thank you.
I have spoken to a Nationwide and they have advised that yes i can have HTB ISA and a LISA in the same tax year but they were unclear if it can be across two different providers so suggested i open the HTB ISA and don't deposit any money in the first month. So off i went to get further clarification from Barclays who were really rude and just kept repeating the same line 'you cannot open two ISA's in the same tax year'. I referred them to the government website and she kept repeating 'our policy information says that you cannot open two ISA's in the same tax year'. I asked to speak to a supervisor but could not get through. She gave me a number to try but still not able to get though to anyone.
Any advise appreciated.0 -
Never enter into discussion with a bank employee about the rules surrounding ISAs. These accounts can usually be opened online without any human interaction.Any advise appreciated.
Just make a formal complaint to Barclays and get some compensation for them wasting your time. Complaint handlers are usually better acquainted with the rules and failing that, the Financial Ombudsman Service will usually read the rules carefully before reaching a decision.
As for Nationwide, the notion that you might not be able to pay anything in during the first month, but it would definitely be ok the following month is absurd!
Frankly, I think all staff dealing with such queries should take an appropriateness test (in a similar vein to consumers who invest in 'complex' financial products). If they can't correctly answer 10 multiple choice questions about the ISA rules, they shouldn't be allowed to handle ISA queries.0 -
:eek:So off i went to get further clarification from Barclays who were really rude and just kept repeating the same line 'you cannot open two ISA's in the same tax year'. I referred them to the government website and she kept repeating 'our policy information says that you cannot open two ISA's in the same tax year'. I asked to speak to a supervisor but could not get through. She gave me a number to try but still not able to get though to anyone.
Getting duff info from Nationwide and then going to ask Barclays must be close to the dictionary definition of 'out of the frying pan into the fire'!
I can imagine that the level of HTB ISA queries this week will be significantly higher than normal during the last-minute rush and therefore the risk of ill-informed staff answering them greater than usual but there really is no excuse for such poor training, and Barclays have so much form for this, as pointed out on many previous threads, so definitely need to up their game....0 -
I was advised by NatWest today I could open a help to buy ISA and leave my other cash ISA and S&S ISA with my other bank. As long as I don't put in more than £20k for the remainder of the year apparently it's fine.
So if they say that about H2B then in theory the same applies to Lifetime ISA.Mortgage started 2020, aiming to clear it in 2026.0 -
I'm not sure if I'm understanding the point you're making, but given that HTB ISAs are cash ISAs and Lifetime ISAs aren't, there is a difference in permissible permutations.MovingForwards wrote: »I was advised by NatWest today I could open a help to buy ISA and leave my other cash ISA and S&S ISA with my other bank. As long as I don't put in more than £20k for the remainder of the year apparently it's fine.
So if they say that about H2B then in theory the same applies to Lifetime ISA.
If you haven't paid into your cash ISA this tax year then NatWest are correct that you can open a HTB ISA with them while retaining the cash ISA elsewhere, but for the avoidance of doubt you can't pay into a cash ISA with another institution and also a NatWest HTB ISA in the same tax year. You could pay into a NatWest cash ISA and a LISA elsewhere though, and the location of any S&S ISA isn't directly relevant....0 -
I'm not sure if I'm understanding the point you're making, but given that HTB ISAs are cash ISAs and Lifetime ISAs aren't, there is a difference in permissible permutations.
If you haven't paid into your cash ISA this tax year then NatWest are correct that you can open a HTB ISA with them while retaining the cash ISA elsewhere, but for the avoidance of doubt you can't pay into a cash ISA with another institution and also a NatWest HTB ISA in the same tax year. You could pay into a NatWest cash ISA and a LISA elsewhere though, and the location of any S&S ISA isn't directly relevant....
!!!!!!, they told me I could!
I queried about opening the H2B and whether I could do it because of having my other ISA with another bank and paid into it each month this year, several times I said it and was told I could.
Sorry OP I've obviously been given wrong advice and it's of no use to you!Mortgage started 2020, aiming to clear it in 2026.0 -
I think you are correct. Too many phone calls for Barclays savings & ISA experts to deal with and my call was put through to the Indian call centre. They were clearly just reading off a script and refusing to listen to me (although she denied it! and even said she had received some training on ISA's!).
I will do what you suggest and complain to Barclays and let them know that their employee told me 'as our policy states that you cannot have more than one ISA in the same tax year you cannot give you a HTB ISA, therfore, open a HTB ISA with Nationwide and then transfer it to us next year'!!!!! (don't think i'll be using them next tax year).
Anyway, i have a couple of cash ISA's from previous years but not paid into them this tax year.
I have opened up the Nationwide HTB account on line and transferred money straight in with no problems. It was made clear on the application that you can indeed have more than one ISA type in the same tax year as long as you don't go over the 20k total limit.
Thank you for your help.
It is infuriating. There must so many people that have been given the same incorrect advice from Barclays.0
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