Hey there! Sign in to join this conversationNew here? Join for free
    • Thread Starter
    Offline

    0
    ReputationRep:
    Hi all,

    As I understand the Halifax help-to-buy isa are offering 4% interest. I don't have much to save (£1.5-2k) so since this is offering higher rates than cash ISA I was thinking of putting my money into this. I don't think I will be saving £200 every month so was gonna just put all the money I had in and let it build interest.
    What are the negatives of this?
    I'm thinking if I have more money to save set up a stocks and shares ISA and put the extra money there.

    p.s: I don't have any plans to buy a house any time soon. Maybe will do in about 5-10 years
    • TSR Support Team
    • Clearing and Applications Advisor
    Offline

    21
    ReputationRep:
    TSR Support Team
    Clearing and Applications Advisor
    You can get a higher interest rate in current accounts. TSB give you 5% on up to £2000. Nationwide give you 5% on up to £2500 (for a year). I don't think there's any point taking out Help To Buy ISA until you can afford the monthly deposits.
    Offline

    0
    ReputationRep:
    The bonus of the help to buy ISA is that the government subsidise anything that is saved by 25% when you come to putting a deposit down on your first house.

    It's recommended that you initially open one up with the full £1200 deposit (or this would otherwise take you 6 months to get to the same stage), and you can pay in up to £200/month. You can choose not to save some months if you don't have the money.

    It's a good investment and if you are saving £200 a month it would take you around 4 and a half years to save the full amount (£12,000), but this would then give you 15k to put down on a mortgage.
 
 
 
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • Poll
    What's your favourite Christmas sweets?
    Useful resources
    How much money do you spend a week?The ultimate guide to tax!Guide to student bank accounts

    Sponsored features:

    Web Legend

    Win a Macbook Air!

    Blog about setting up a website for a chance to win in our Web Legend competition.

    Quick link:

    Unanswered money and finance threads

    Groups associated with this forum:

    View associated groups
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

    Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

    Quick reply
    Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.