Help to buy ISA

DJMK4 · 5 Apr 2016 at 10:38

Now that April is here, I am going to finally set-up my Help to buy ISA.

Is Halifax still the best deal about here?

Planning of opening the account with the max of £1000 and then I think you can make an immediate £200 deposit? then you have to fund the account on the 25th of each month (max £200?)

doodah · 5 Apr 2016 at 10:40

Also keen to know. Plus you can't simply lump e.g. £12k in there? Has to be gradual instalments on your part?

Ekim · 5 Apr 2016 at 10:43

doodah said:
Also keen to know. Plus you can't simply lump e.g. £12k in there? Has to be gradual instalments on your part?

You can put £1,000 in there to open the account and then an additional £200 in the first month. After that it is just £200 a month. Wife and I opened ours in December and have £2,000 in each of ours now. (Which would work out as a total of £1,000 bonus if we were to buy right now).

DJMK4 said:
Now that April is here, I am going to finally set-up my Help to buy ISA.

Is Halifax still the best deal about here?

Halifax has the best interest. However it is worth bearing in mind other offers you might be able to get. For example Nationwide offer various cashback if you get a mortgage through them and you have saved with them for a certain amount of time.

My wife has one with Halifax and I have another with Nationwide.

DJMK4 · 5 Apr 2016 at 10:50

Ekim said:
You can put £1,000 in there to open the account and then an additional £200 in the first month. After that it is just £200 a month. Wife and I opened ours in December and have £2,000 in each of ours now. (Which would work out as a total of £1,000 bonus if we were to buy right now).

Halifax has the best interest. However it is worth bearing in mind other offers you might be able to get. For example Nationwide offer various cashback if you get a mortgage through them and you have saved with them for a certain amount of time.

My wife has one with Halifax and I have another with Nationwide.

I am generally splitting my savings, as I can actually save more than the £200 a month, I am putting some in to Halifax and plan to look at somewhere to send the rest of my money.

At the moment as a temp measure I have money in bonds, and can continue paying per month.

Halifax was one of the options.

Cool will get that set-up tomorrow then seeing as the new tax year starts

Mucky_Pup · 5 Apr 2016 at 12:06

Wish Osbourne had brought out the lifetime ISA this tax year, or upped the limits on the HTB ISA to the same as the lifetime ISA in this tax year

Will be too late for me to convert my HTB ISA into a lifetime ISA next year

Mucky_Pup · 5 Apr 2016 at 12:12

DJMK4 said:
Doesnt work how? As in not showing when use a browser to log in to internet banking?

Sorry didn't see that reply till now, doesn't show up my HTB ISA on my phone app on my phone, shows up when I login on a web browser though.

Semple · 5 Apr 2016 at 12:16

Mucky_Pup said:
Sorry didn't see that reply till now, doesn't show up my HTB ISA on my phone app on my phone, shows up when I login on a web browser though.

I believe Halifax pulled everyones HtB ISA's from the app because some could see it whilst others couldn't. I imagine this might get fixed soon. But don't worry you're not the only one, and as you say, it's visible from a web browser.

doodah · 5 Apr 2016 at 13:12

Ekim said:
You can put £1,000 in there to open the account and then an additional £200 in the first month. After that it is just £200 a month. Wife and I opened ours in December and have £2,000 in each of ours now. (Which would work out as a total of £1,000 bonus if we were to buy right now).

Thanks. I am expecting a lump sum soon so would it be best to put it into a savings account and have that account feed the ISA?

Skeeter · 5 Apr 2016 at 13:19

If you have a lump sum you can use a Santander 123 Current Account and some Direct Debits to get 3% pre tax.

Up to £20k in your own account plus up to another £20k in a joint account.

UTmaniac · 5 Apr 2016 at 14:47

DJMK4 said:
Is Halifax still the best deal about here?

Planning of opening the account with the max of £1000 and then I think you can make an immediate £200 deposit? then you have to fund the account on the 25th of each month (max £200?)

I think Santander have now matched Halifax's HTB 4% interest rate, I made a a point of telling the cashier why I withdrew £1200 to start an account at Halifax, because back then the Santander rate was pretty poor in Feb, 1.25% IIRC.

I don't know if it is specific to Halifax's HTB, but your up to £200pcm deposit must go in by the 25th of each month, to count for that month. I messed up on this front, opening my account on 29th Feb, so that £200 paid in addition to the £1000 startup deposit was in effect March's deposit.

DJMK4 · 5 Apr 2016 at 15:00

UTmaniac said:
I think Santander have now matched Halifax's HTB 4% interest rate, I made a a point of telling the cashier why I withdrew £1200 to start an account at Halifax, because back then the Santander rate was pretty poor in Feb, 1.25% IIRC.

I don't know if it is specific to Halifax's HTB, but your up to £200pcm deposit must go in by the 25th of each month, to count for that month. I messed up on this front, opening my account on 29th Feb, so that £200 paid in addition to the £1000 startup deposit was in effect March's deposit.

I have £1200 to play with now that I have transferred from bonds,

So I can open it with £1000, and make a £200 payment intially, however I do not get paid until the 25th, so I can only make payments ON the 25th of each month.

Is this going to cause an issue?

UTmaniac · 5 Apr 2016 at 15:04

If you went along today, that £200 would be your April deposit. You would then be able to set up a £200 standing order between 26th April and 25th May to be your May deposit and then ongoing monthly deposit.

DJMK4 · 5 Apr 2016 at 15:17

UTmaniac said:
If you went along today, that £200 would be your April deposit. You would then be able to set up a £200 standing order between 26th April and 25th May to be your May deposit and then ongoing monthly deposit.

So open the account with £1000

Make an initial standing order today of £200

Make further standing orders to come out and go in to Help to buy ISA on 25th of each month (1st one on 25th May)

That would be ideal

Mucky_Pup · 5 Apr 2016 at 17:22

I'd do it before the 25th personally in case anything gets messed up, mine comes out on the 11th. The money needs to be in your ISA on the 25th at the latest.

DJMK4 · 5 Apr 2016 at 20:34

Mucky_Pup said:
I'd do it before the 25th personally in case anything gets messed up, mine comes out on the 11th. The money needs to be in your ISA on the 25th at the latest.

Well if I make the initial deposit of £1000 tomorrow, then set-up a quick standing order to send the £200 thats £1200.

I wont be able to make any further payment until latest 25th May then

iv just spoken with Halifax they said the banks run at midnight so aslong as the payment comes out and goes in to the halifax help to buy ISA on the 25th it should be ok.

Otherwise im not really going to have the funds before unless I fund it from somewhere else....Its coming out my salary which is on the 25th.

Tosno · 5 Apr 2016 at 21:11

Just start a new month on 26th+

DJMK4 · 5 Apr 2016 at 21:32

So if I make the initial deposit and standing order tomorrow. Next one on 26th may

Tosno · 5 Apr 2016 at 21:46

Yes and you won't have the stress worrying about 25th.

norm · 5 Apr 2016 at 22:30

DJMK4 said:
So if I make the initial deposit and standing order tomorrow. Next one on 26th may

You can only make one SO per month. The 25th cutoff is to allow for February.

Set the standing order to the 1st of each month and you have no issues with payments potentially being delayed by weekends/bank holidays.

Redgie · 6 Apr 2016 at 08:38

I believe the Santander HTB ISA (which has the same rate as Halifax) is more flexible with the pay in dates if this helps.