Should i open a help to buy ISA? Watch

Silver Arrow
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#1
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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?
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Reality Check
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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.
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Silver Arrow
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(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?
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Reality Check
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(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.
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Silver Arrow
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(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?
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ben91
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(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!
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Silver Arrow
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(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?
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ben91
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(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!
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Rakas21
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Even with rubbish interest the government dividend makes it better than almost all others.
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Sternumator
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Well worth converting it to a lifetime ISA when they start next year as well. They will let you save 4k a year and get the bonus.
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