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  • FIRST POST
    • JustAnotherSaver
    • By JustAnotherSaver 5th Jan 18, 9:34 PM
    • 3,009Posts
    • 495Thanks
    JustAnotherSaver
    Withdraw from HTB-ISA to pay in to LISA?
    • #1
    • 5th Jan 18, 9:34 PM
    Withdraw from HTB-ISA to pay in to LISA? 5th Jan 18 at 9:34 PM
    My brother has paid in to a HTB-ISA which now totals 5.6k. The plan is to transfer this over to a Skipton cash LISA as after April it'll be counted as new money (& therefore over the 4k per year allowance).

    That bit is fairly straight forward but i was wondering about my sister. She was going to do the same but i'm wondering if it's actually best she doesn't.

    She doesn't earn as much and has only fairly recently gone full time. As a result her HTB ISA is only 1.3k.

    Where he's paying in 200pm she was only managing 40-50. So i was thinking could it be best to (at least for the first year) leave the HTB ISA money where it is, set aside 50pm (hopefully more but for now 50) which would be 600+ interest (not much) which takes the pot to 1.9k.

    She could do the same the year after too really and make that 2.5k. At this point (for example) she could withdraw the whole lot, put it in to a cash LISA.


    I know that does away with many peoples thinking of eating in to your allowance - but if she isn't going to hit the 4k allowance any time soon (even by combining numerous years worth of subscriptions) and she's not going to come close to the personal allowance of 20k (or whatever it is at the time)

    then is there a good reason to transfer over to a cash LISA now and NOT do what i just said?


    Just thinking this because HTB ISA currently sitting at 3.5% whereas cash LISA is 0.5%.

Page 1
    • Alexland
    • By Alexland 5th Jan 18, 9:41 PM
    • 2,565 Posts
    • 1,950 Thanks
    Alexland
    • #2
    • 5th Jan 18, 9:41 PM
    • #2
    • 5th Jan 18, 9:41 PM
    Yes at your sister's rate of saving there is not much advantage unless her saving rate is likely to increase above the HTB rate or she would be buying a property outside London above the HTB limit but within the LISA limit, but with such a small deposit this seems unlikely unless she is expecting a windfall from somewhere.
    • Ed-1
    • By Ed-1 5th Jan 18, 11:29 PM
    • 2,228 Posts
    • 1,186 Thanks
    Ed-1
    • #3
    • 5th Jan 18, 11:29 PM
    • #3
    • 5th Jan 18, 11:29 PM
    My brother has paid in to a HTB-ISA which now totals 5.6k. The plan is to transfer this over to a Skipton cash LISA as after April it'll be counted as new money (& therefore over the 4k per year allowance).

    That bit is fairly straight forward but i was wondering about my sister. She was going to do the same but i'm wondering if it's actually best she doesn't.

    She doesn't earn as much and has only fairly recently gone full time. As a result her HTB ISA is only 1.3k.

    Where he's paying in 200pm she was only managing 40-50. So i was thinking could it be best to (at least for the first year) leave the HTB ISA money where it is, set aside 50pm (hopefully more but for now 50) which would be 600+ interest (not much) which takes the pot to 1.9k.

    She could do the same the year after too really and make that 2.5k. At this point (for example) she could withdraw the whole lot, put it in to a cash LISA.


    I know that does away with many peoples thinking of eating in to your allowance - but if she isn't going to hit the 4k allowance any time soon (even by combining numerous years worth of subscriptions) and she's not going to come close to the personal allowance of 20k (or whatever it is at the time)

    then is there a good reason to transfer over to a cash LISA now and NOT do what i just said?


    Just thinking this because HTB ISA currently sitting at 3.5% whereas cash LISA is 0.5%.
    Originally posted by JustAnotherSaver
    The Skipton cash LISA is now 0.75%.
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