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    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
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    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.
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    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.
 
 
 

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