Help to buy ISA - transferring current cash ISA
Discussion
Hi all. Just a few questions about how to work my existing cash ISA and new HtB ISA.
I have a cash ISA with TSB. Variable rate which was at 2% but I've just checked and it's at 0.2%. Brilliant.
Anyway. I'm eligible for a Help to buy ISA as I'm not a homeowner. My question is that if I convert my existing cash ISA into a new Help to buy ISA (take advantage of better interest rate and keep money together), how does this affect my payments?
Should I still pay £1200 into the HtB ISA in the first month and £200 per month to top it up thereafter? Or does the money from the previous cash ISA going into the new HtB ISA negate that?
If I pay up to my tax limit (£15,240) in the coming tax year, will that affect anything? I keep reading about putting in no more than £200 per month to get the government bonus.
I may have a few more questions!
I have a cash ISA with TSB. Variable rate which was at 2% but I've just checked and it's at 0.2%. Brilliant.
Anyway. I'm eligible for a Help to buy ISA as I'm not a homeowner. My question is that if I convert my existing cash ISA into a new Help to buy ISA (take advantage of better interest rate and keep money together), how does this affect my payments?
Should I still pay £1200 into the HtB ISA in the first month and £200 per month to top it up thereafter? Or does the money from the previous cash ISA going into the new HtB ISA negate that?
If I pay up to my tax limit (£15,240) in the coming tax year, will that affect anything? I keep reading about putting in no more than £200 per month to get the government bonus.
I may have a few more questions!
Have a look at www.helptobuy.gov.uk, this should explain everything. My understanding is you can only transfer from an existing H2B ISA to H2B ISA, not from a cash ISA.
Jimmy Recard said:
Should I still pay £1200 into the HtB ISA in the first month and £200 per month to top it up thereafter?
I keep reading about putting in no more than £200 per month to get the government bonus.
This is correct, £200 a month is the maximum deposit, and you are allowed an extra £1000 month one. I keep reading about putting in no more than £200 per month to get the government bonus.
From what I've read, you definitely can convert a cash ISA. Not all banks will do it but some definitely will (I've just read this guide on Money Saving Expert) http://www.moneysavingexpert.com/savings/help-to-b...
I think that because I haven't paid into the cash ISA in this tax year (I last paid in in the 2013-2014 tax year I think) then the cash doesn't count towards the total.
I'm going into the bank where I hold the ISA later for other reasons so I'll see if they can confirm.
Thanks for the replies!
I think that because I haven't paid into the cash ISA in this tax year (I last paid in in the 2013-2014 tax year I think) then the cash doesn't count towards the total.
I'm going into the bank where I hold the ISA later for other reasons so I'll see if they can confirm.
Thanks for the replies!
If you've subscribed to a cash isa this tax year i.e. paid in since 6th April 2015 more than 1200 then you must wait until the 6th April 2016 to open an HTB isa. At that time you could transfer in up to £1200 of this current year's subscriptions.
If If you've subscribed less than £1200 then you can open a new HTB, or convert if the provider allows, but you must transfer in the full amount of this years subscriptions. You can the make this up to the £1200 maximum in the first month if you wish from another source.
If you have an existing cash isa that has not been subscribed to this tax year then if you wish you can transfer out from this to a new HTB up to a maximum of £1200.
They key points to remember are that your isa allowance is £15240 this tax year, this can be split any way you like between cash and stocks and shares isas. You can not pay in to more than one cash isa and and stocks and shares isa in the same tax year, unless you are transferring the full amount of the current year's subscriptions. An htb IS a cash ISA. By using an HTB isa you are limiting your isa subscriptions effectively to £3400 this year and £2400 per year going forward unless you want to use your stocks and shares allowance too but this is unlikely/unwise if you are saving for a house deposit.
The positives are it's free money if you do buy a house due to the government contribution. The maximum government bonus of £3000 is paid in saving £12000 which will take you a minimum of 44 months to save at £1200 deposit plus £200 per month. Even if you have no intention of buying a house, the other positive is the interest rate, you could view it as an instant access savings account that pays 4% tax free making it a no brainer for anyone wanting to put a little bit of rainy day money aside every month. (provided you have never owned a house, anywhere, ever & have a national insurance number)
Hope that makes some sense and helps.
Adam
If If you've subscribed less than £1200 then you can open a new HTB, or convert if the provider allows, but you must transfer in the full amount of this years subscriptions. You can the make this up to the £1200 maximum in the first month if you wish from another source.
If you have an existing cash isa that has not been subscribed to this tax year then if you wish you can transfer out from this to a new HTB up to a maximum of £1200.
They key points to remember are that your isa allowance is £15240 this tax year, this can be split any way you like between cash and stocks and shares isas. You can not pay in to more than one cash isa and and stocks and shares isa in the same tax year, unless you are transferring the full amount of the current year's subscriptions. An htb IS a cash ISA. By using an HTB isa you are limiting your isa subscriptions effectively to £3400 this year and £2400 per year going forward unless you want to use your stocks and shares allowance too but this is unlikely/unwise if you are saving for a house deposit.
The positives are it's free money if you do buy a house due to the government contribution. The maximum government bonus of £3000 is paid in saving £12000 which will take you a minimum of 44 months to save at £1200 deposit plus £200 per month. Even if you have no intention of buying a house, the other positive is the interest rate, you could view it as an instant access savings account that pays 4% tax free making it a no brainer for anyone wanting to put a little bit of rainy day money aside every month. (provided you have never owned a house, anywhere, ever & have a national insurance number)
Hope that makes some sense and helps.
Adam
jetskiadam said:
If you've subscribed to a cash isa this tax year i.e. paid in since 6th April 2015 more than 1200 then you must wait until the 6th April 2016 to open an HTB isa. At that time you could transfer in up to £1200 of this current year's subscriptions.
If If you've subscribed less than £1200 then you can open a new HTB, or convert if the provider allows, but you must transfer in the full amount of this years subscriptions. You can the make this up to the £1200 maximum in the first month if you wish from another source.
If you have an existing cash isa that has not been subscribed to this tax year then if you wish you can transfer out from this to a new HTB up to a maximum of £1200.
They key points to remember are that your isa allowance is £15240 this tax year, this can be split any way you like between cash and stocks and shares isas. You can not pay in to more than one cash isa and and stocks and shares isa in the same tax year, unless you are transferring the full amount of the current year's subscriptions. An htb IS a cash ISA. By using an HTB isa you are limiting your isa subscriptions effectively to £3400 this year and £2400 per year going forward unless you want to use your stocks and shares allowance too but this is unlikely/unwise if you are saving for a house deposit.
The positives are it's free money if you do buy a house due to the government contribution. The maximum government bonus of £3000 is paid in saving £12000 which will take you a minimum of 44 months to save at £1200 deposit plus £200 per month. Even if you have no intention of buying a house, the other positive is the interest rate, you could view it as an instant access savings account that pays 4% tax free making it a no brainer for anyone wanting to put a little bit of rainy day money aside every month. (provided you have never owned a house, anywhere, ever & have a national insurance number)
Hope that makes some sense and helps.
Adam
My son has a current Nationwide cash ISA and had about £2000 of this years allowance left. Nationwide has allowed him to split the ISA and he has now started a help to buy ISA using this years remaining allowance.If If you've subscribed less than £1200 then you can open a new HTB, or convert if the provider allows, but you must transfer in the full amount of this years subscriptions. You can the make this up to the £1200 maximum in the first month if you wish from another source.
If you have an existing cash isa that has not been subscribed to this tax year then if you wish you can transfer out from this to a new HTB up to a maximum of £1200.
They key points to remember are that your isa allowance is £15240 this tax year, this can be split any way you like between cash and stocks and shares isas. You can not pay in to more than one cash isa and and stocks and shares isa in the same tax year, unless you are transferring the full amount of the current year's subscriptions. An htb IS a cash ISA. By using an HTB isa you are limiting your isa subscriptions effectively to £3400 this year and £2400 per year going forward unless you want to use your stocks and shares allowance too but this is unlikely/unwise if you are saving for a house deposit.
The positives are it's free money if you do buy a house due to the government contribution. The maximum government bonus of £3000 is paid in saving £12000 which will take you a minimum of 44 months to save at £1200 deposit plus £200 per month. Even if you have no intention of buying a house, the other positive is the interest rate, you could view it as an instant access savings account that pays 4% tax free making it a no brainer for anyone wanting to put a little bit of rainy day money aside every month. (provided you have never owned a house, anywhere, ever & have a national insurance number)
Hope that makes some sense and helps.
Adam
I understand some building society's have not offered this split but Nationwide certainly have.
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