Should i open a help to buy ISA?

To buy a house and is it a good idea? I really want a place of my own as living at home makes me feel like a child. I see all my friends progressing in life and i don't wanna be left behind. Is it a good idea?

Reply 1

Reality Check

22

A help to buy ISA is definitely a good idea - the effective rate of interest is far, far higher than you'd possibly get on cash deposits anywhere else. As you probably know, you can save a maximum of £3K and the government will add 25% of what you've saved as a bonus.

(edited 7 years ago)

Reply 2

Silver Arrow

OP

19

Original post by Reality Check

A help to buy ISA is definitely a good idea - the effective rate of interest is far, far higher than you'd possibly get on cash deposits anywhere else. As you probably know, you can save a maximum of £3K and the government will add 25% of what you've saved as a bonus.

Is there just one help to buy with that interest rate or are there some with different interest rates?

Reply 3

Reality Check

22

Original post by Silver Arrow

Is there just one help to buy with that interest rate or are there some with different interest rates?

The 25% is not interest, it's the government bonus. The accounts also do pay interest, and that varies between different providers - pays to shop around, but 2.5% is available. So you can see how good a savings vehicle this is - you get a normal cash interest rate AND a government bonus.

Reply 4

Silver Arrow

OP

19

Original post by Reality Check

The 25% is not interest, it's the government bonus. The accounts also do pay interest, and that varies between different providers - pays to shop around, but 2.5% is available. So you can see how good a savings vehicle this is - you get a normal cash interest rate AND a government bonus.

Ok cos i have an appointment with Natwest tomorrow to open one. What percentage do they give and is there a website that i can compare different rates?

Reply 5

ben91

2

Original post by Silver Arrow

Ok cos i have an appointment with Natwest tomorrow to open one. What percentage do they give and is there a website that i can compare different rates?

Did you have any luck with opening your ISA? It's definitely worth doing and if you can put the £1,000 straight in this month then do it otherwise it will take an additional 5 months to get that in there...! Nothing like a 25% increase in cash even if you do have to use it against a house!

Reply 6

Silver Arrow

OP

19

Original post by ben91

Did you have any luck with opening your ISA? It's definitely worth doing and if you can put the £1,000 straight in this month then do it otherwise it will take an additional 5 months to get that in there...! Nothing like a 25% increase in cash even if you do have to use it against a house!

Yes i was able to do so and i put in £1200 as advised by the guy in the bank. Can i keep saving into it forever or does it expire after i reach a certain amount?

Reply 7

ben91

2

Original post by Silver Arrow

Yes i was able to do so and i put in £1200 as advised by the guy in the bank. Can i keep saving into it forever or does it expire after i reach a certain amount?

Definitely worth doing that....! You can now save up to £200 every month until you reach £12,000!! Then so long as you use it as a deposit on a house you will get up to an additional £3000 from the government!