Moneyfacts.co.uk is telling those saving for their first to open a Help to Buy ISA before these accounts close to new applications on 30 November 2019.
Help to Buy ISAs give a 25% bonus for every £1 saved, so a £100 saved is worth £125. The maximum bonus that can be earned is £3,000.
These accounts earn interest in the usual way, but the bonus is not available until you are ready to pay a deposit for a house.
A Help to Buy ISA can be opened from as little £1 up to £1,200 for your first deposit, from then on you can add £200 every month.
After the 30 November 2019, Help to Buy ISAs will close to new applications, however existing account holders can continue to enjoy the benefits of the Government bonus until they reach the maximum of £3,000 or until the scheme closes completely to deposits on 30 November 2029. All bonuses must be claimed by 1 December 2030.
Year One
Years Two to Six
Years Seven to Eleven
Lifetime ISAs (LISAs), the Help to Buy ISA’s nearest equivalent will continue after the 30 November deadline. However, there are only five providers of Lifetime ISAs, versus 24 in the Help to Buy market. Rates between the two products also have a huge variance with Help to Buy ISAs starting from 0.15% AER up to 3.00% AER compared to Lifetime ISAs at 1.00% AER up to 1.40% AER.
As an example, the difference in interest between the top paying Help to Buy ISA compared to the top rate LISA would be £21.08 for 12 months saving £200 per month. This extra £21 may not seem a great difference but will widen even further as compound interest is applied over the years.
Savers looking for the best and fastest return on their savings to help buy a home should act now and open a Help to Buy ISA before the deadline.
Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
ISAs are a great saving option for consumers as they allow up to £20,000 (2019/20 tax year limit) tax-free deposits to be made each tax year
ISAs are a great saving option for consumers as they allow up to £20,000 (2019/20 tax year limit) tax-free deposits to be made each tax year
Although there are just days left to open a Help to Buy ISA, those saving for a deposit for their first home are being urged to open one now
Although there are just days left to open a Help to Buy ISA, those saving for a deposit for their first home are being urged to open one now
The Financial Conduct Authority (FCA) has announced today that it will ban the marketing of mini-bonds to retail customers. This ban starts from the 1 January 2020 and will last for 12 months while the FCA consults on future permanent rules.
The Financial Conduct Authority (FCA) has announced today that it will ban the marketing of mini-bonds to retail customers. This ban starts from the 1 January 2
ISAs are a great saving option for consumers as they allow up to £20,000 (2019/20 tax year limit) tax-free deposits to be made each tax year
ISAs are a great saving option for consumers as they allow up to £20,000 (2019/20 tax year limit) tax-free deposits to be made each tax year
Although there are just days left to open a Help to Buy ISA, those saving for a deposit for their first home are being urged to open one now
Although there are just days left to open a Help to Buy ISA, those saving for a deposit for their first home are being urged to open one now
The Financial Conduct Authority (FCA) has announced today that it will ban the marketing of mini-bonds to retail customers. This ban starts from the 1 January 2020 and will last for 12 months while the FCA consults on future permanent rules.
The Financial Conduct Authority (FCA) has announced today that it will ban the marketing of mini-bonds to retail customers. This ban starts from the 1 January 2
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