H2B ISA Questions
Discussion
In April I opened up a Help to buy ISA with Barclays, my usual banking company. I also have a regular savings ISA with them as well. I opened the H2B ISA up with the maximum deposit allowed and expected to them put £200 a month into it so max it out as soon as i could over the next amount of years. I quickly found that because I also put money into my regular ISA, it locked me into paying into only 1 ISA per year, it said I had subscribed to more than 1 ISA for the year and couldn't pay into my h2b ISA again, so for the last 6 months i've lost out on putting money into my h2b ISA.
What I have thought of now, is could I open a H2B ISA with say, Santander or another bank and keep my Barclays regular cash ISA and pay into both? Or am I really limited to paying into only 1 of them per year? If so, then that is a very awkward system!
Cheers
What I have thought of now, is could I open a H2B ISA with say, Santander or another bank and keep my Barclays regular cash ISA and pay into both? Or am I really limited to paying into only 1 of them per year? If so, then that is a very awkward system!
Cheers
gman88667733 said:
In April I opened up a Help to buy ISA with Barclays, my usual banking company. I also have a regular savings ISA with them as well. I opened the H2B ISA up with the maximum deposit allowed and expected to them put £200 a month into it so max it out as soon as i could over the next amount of years. I quickly found that because I also put money into my regular ISA, it locked me into paying into only 1 ISA per year, it said I had subscribed to more than 1 ISA for the year and couldn't pay into my h2b ISA again, so for the last 6 months i've lost out on putting money into my h2b ISA.
What I have thought of now, is could I open a H2B ISA with say, Santander or another bank and keep my Barclays regular cash ISA and pay into both? Or am I really limited to paying into only 1 of them per year? If so, then that is a very awkward system!
Cheers
It is complex. You can certainly have a HTB ISA running at the same time as a normal ISA, but the normal ISA must (for reasons unknown) be a Stocks & Shares ISA.What I have thought of now, is could I open a H2B ISA with say, Santander or another bank and keep my Barclays regular cash ISA and pay into both? Or am I really limited to paying into only 1 of them per year? If so, then that is a very awkward system!
Cheers
This is because HTO ISAs are classed as Cash ISAs, of which you can only contribute to 1 in any given tax year.
There are some banks/building societies that understand this rule and allow contributions to be split between both of these, but this will necessitate at transfer to a lower interest rate.
TBH, closing down your cash ISA for this financial year (and using your annual tax free interest exemption) or moving it to a S&S ISA may be a better option for you.
Any questions, just ask!
JulianPH said:
It is complex. You can certainly have a HTB ISA running at the same time as a normal ISA, but the normal ISA must (for reasons unknown) be a Stocks & Shares ISA.
This is because HTO ISAs are classed as Cash ISAs, of which you can only contribute to 1 in any given tax year.
There are some banks/building societies that understand this rule and allow contributions to be split between both of these, but this will necessitate at transfer to a lower interest rate.
TBH, closing down your cash ISA for this financial year (and using your annual tax free interest exemption) or moving it to a S&S ISA may be a better option for you.
Any questions, just ask!
If you want to use it to buy....why not open a LISA? I would *think* you can perhaps transfer the H2B money to it?This is because HTO ISAs are classed as Cash ISAs, of which you can only contribute to 1 in any given tax year.
There are some banks/building societies that understand this rule and allow contributions to be split between both of these, but this will necessitate at transfer to a lower interest rate.
TBH, closing down your cash ISA for this financial year (and using your annual tax free interest exemption) or moving it to a S&S ISA may be a better option for you.
Any questions, just ask!
You can deposit more...you can pick a S&S one (our young adults went for AJBell ones).....my logic to them was that even if the markets dropped a bit, they are still getting the government's 25% bonus....& should it NOT be used for a house, at least it is a decent long-term investment for them.
Of course if it was for a purchase in the near future, I can see why you might want to keep the HTB cash ISA.....
mikeiow said:
If you want to use it to buy....why not open a LISA? I would *think* you can perhaps transfer the H2B money to it?
You can deposit more...you can pick a S&S one (our young adults went for AJBell ones).....my logic to them was that even if the markets dropped a bit, they are still getting the government's 25% bonus....& should it NOT be used for a house, at least it is a decent long-term investment for them.
Of course if it was for a purchase in the near future, I can see why you might want to keep the HTB cash ISA.....
^^^ This.You can deposit more...you can pick a S&S one (our young adults went for AJBell ones).....my logic to them was that even if the markets dropped a bit, they are still getting the government's 25% bonus....& should it NOT be used for a house, at least it is a decent long-term investment for them.
Of course if it was for a purchase in the near future, I can see why you might want to keep the HTB cash ISA.....
It makes a great deal of sense.
HTB isa is a bit crap, you don’t get the bonus until you’ve completed on the house, it’s not added every month like the LISA bonus is.
I used a Skipton cash LISA to buy my first house. You can put in £4K a year in lump sums or monthly etc, then you get the bonus each month from HMRC.
You need to have it a year before you buy a place though. And you can use the cash towards the deposit
I used a Skipton cash LISA to buy my first house. You can put in £4K a year in lump sums or monthly etc, then you get the bonus each month from HMRC.
You need to have it a year before you buy a place though. And you can use the cash towards the deposit
gman88667733 said:
It'll be used to buy a house, in about 6-7 years.
As i am only 21, I am a bit confused by LISA's and how easy it would be to change from one to another or change what my current ISA is....
How did you find out about HTB ISAs?As i am only 21, I am a bit confused by LISA's and how easy it would be to change from one to another or change what my current ISA is....
Check https://www.moneysavingexpert.com/savings/lifetime... for the lowdown on LISAs.
In a nutshell, they replaced HTB, but with more money allowed (£4K pa). The government add 25%. If you do not use it for a house, you can access the money from age 60...so it could turn into a little pre-retirement fund. Do not withdraw that money for any other use - the penalties are high!
As with any investment, do a bit of research.....my offspring are not dissimilar age to you and have opened ones with AJBell....likely to deposit ad hoc lumps of cash. Other fund platforms are available!
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