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    • Thread Starter

    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

    TSR Support Team
    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.

    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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