Help to Buy ISA accounts can still be held by many savers but it is ultimately up to providers if they still want to offer the product. Lifetime ISAs (LISA) were launched to replace Help to Buy ISAs and there have been efforts to encourage savers to move to LISAs where appropriate.
Because of this, many financial institutions may be hesitant to engage with Help to Buy accounts.
In some instances, providers may simply declare that they will not manage the product anymore.
This could be concerning for savers to hear but fortunately, there should be processes in place to ensure no one misses out.
If a Help to Buy ISA provider details that they no longer plan to offer the product, they should give savers plenty of notice.
READ MORE: ISA: You can re-open a Help to Buy account under these conditions
Help to Buy ISAs can have up to £200 saved into them every month but there is a bonus cap of £3,000.
LISAs, so long as they’re used to their utmost potential, can provide holders with a bonus totalling £32,000.
Additionally, LISA bonuses can also be used to fund retirement if the saver does not wish to use them for a house.
In most instances, LISAs provide more generous features than Help to Buy accounts but they do have one downside when it comes to withdrawals.
LISA accounts must be open for at least a year before any bonus can be received, meaning it can take longer to receive the bonus overall.
ISAs of all kinds provide various tax perks and are a popular part of many people’s savings plans.
Fortunately, ISAs can be opened with many financial institutions and not just banks.
It is possible to open an ISA with:
- building societies
- credit unions
- friendly societies
- stock brokers
- peer-to-peer lending services
- crowdfunding companies and
- other financial institutions