Savers can deposit up to £1,200 within the first calendar month of funding the account, and then up to £200 monthly thereafter. Once the account has a balance of £1,600 it qualifies for a government bonus of 25% up to £3,000 per person.
A range of providers will be offering Help to Buy ISAs, with varying interest rates and linked benefits.
Halifax is currently offering the highest interest rate of 4%, but its account doesn’t allow savers to split their £15,240 allowance with another cash ISA.
Virgin are offering a rate of 3% alongside a new Saving to Buy account, offering interest of 1.30%. The account helps savers to maximise their tax-free allowance as they can set up a regular transfer from their Saving to Buy account into their Help to Buy ISA.
Aldermore, Nationwide and Natwest are all offering an interest rate of 2% and are ‘ISA wrapper’ providers, meaning customers who already have a cash ISA (providing their maximum annual contribution does not exceed £15,240); can open a Help to Buy ISA too.
Lloyds Bank and HSBC are also offering a rate of 2%.
The Newcastle‘s Help to Buy ISA comes with a rate of up to 1.50% and its Custom ISA facility allows savers to open a Help to Buy ISA alongside another ISA from the Newcastle’s range, allowing them to utilise their full ISA allowance. In addition, NBS has also launched the ‘Newcastle First Home ISA’ with a rate of up to 1.15%.