Help-to-buy and cash ISAs

Jko91 · 3 December 2017 at 8:29PM

Let's say I have £20k in a fixed cash ISA, and £20k in a defined access cash ISA (of which £5k was paid in this year, and so is "new savings").

If I want to open and start contributing into a help-to-buy ISA, what do I have to do with the money in the two cash ISAs?

Do I have to take everything out of both accounts and put into non cash ISA accounts, or just the £5k saved this year (in the defined access cash ISA)?

If the second option, can I then roll up the £35k of old money (20+15) into a single cash ISA next year?

Neil_Jones · 3 December 2017 at 9:56PM

No. Just open a H2B Isa and use an ISA transfer form to do a part-transfer for the initial £1200 from the account you paid the £5k into.

You can only contribute to one cash ISA per year. A H2B ISA is classed as a Cash ISA but you can have as many previous tax year ISAs as you "want", that's just an ISA you paid into in previous tax years.

AirlieBird · 3 December 2017 at 10:17PM

Neil_Jones wrote: »

No. Just open a H2B Isa and use an ISA transfer form to do a part-transfer for the initial £1200 from the account you paid the £5k into.

The OP can't do that. The £5k has to be transferred in full and you can't transfer £5k into a HTB ISA. The OP could transfer to a provider that offers portfolio/split cash ISAs, where the allowance can be spread over both a standard Cash ISA and HTB ISA.

Jko91 · 3 December 2017 at 10:31PM

AirlieBird wrote: »

The OP can't do that. The £5k has to be transferred in full and you can't transfer £5k into a HTB ISA. The OP could transfer to a provider that offers portfolio/split cash ISAs, where the allowance can be spread over both a standard Cash ISA and HTB ISA.

Could I withdraw the £5k, transferring £3.8k to a regular savings account and £1.2k to a HTB ISA?

Help-to-buy and cash ISAs

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