Help to Buy ISAs are no longer available to new applicants. If you got a Help to Buy ISA before the 30th November 2019 deadline, you can continue to save into your account until November 2029. Here’s everything you need to know
If you open a tax-free Help to Buy ISA, the government will chip in with a cash contribution worth 25% of what you stash away. Over five years, that would add £3,000 to your balance if you saved the maximum of £12,000.
Find out more about how Help to Buy ISAs work, and when you’ll get the government’s contribution, here.
What is a help to buy ISA?
A help to buy ISA is a type of savings account that the government will top-up with a 25% bonus if you meet certain savings targets.
What if I missed the deadline?
If you missed out on a help to buy ISA, don’t fret, the government’s Lifetime ISA also offers a 25% bonus for first-time buyers.
How does the help to buy ISA work?
If you had already opened a tax-free help to buy ISA before 30th November 2019, the government will chip in with a contribution worth 25% of what you save.
The most the government will contribute is £3,000 – but you need to have paid in £12,000 to get this. If you paid in £1,200 during your first month (which is the only time you could have done so) and put £200 away every month (the maximum monthly contribution thereafter), you’d take four years and seven months to hit the target.
You don’t need to save the full £12,000 to receive a bonus, as the government will top-up your savings once you’ve paid in £1,600.
How long can I keep my help to buy ISA?
You can keep saving into the ISA until 30 November 2029. The deadline for claiming the help to buy ISA bonus from the government is on or before 1 December 2030.
How much bonus can you earn?
The table below outlines how much you can earn as a bonus depending on how much you pay in: