An ISA for first time buyers.

Help to Buy: Backed by HM Government

Help to Buy: ISA -  Qualifying first time buyers can get a 25% bonus from the government’s Help to Buy scheme of up to £3,000

Please read the summary box below before applying

At a glance

Interest rate

Features and benefits

Bear in mind

Withdrawals

Access

2.00% tax free/AER variable

  • Your interest is paid tax free
  • Qualifying first time buyers can get a 25% bonus from the government’s Help to Buy scheme of up to £3,000
  • You can open this account with between £1 and £1,000. This must be received within 21 days of account opening and can be transferred from an existing ISA
  • You can pay in up to £200 in any calendar month. This should be paid by standing order and received by the 25th of the month (this can include the month you open your ISA)
  • If you’re planning to buy your first home with someone else who is also a first time buyer, you can both open a Help to Buy: ISA and both claim Government bonuses of up to £3,000

To apply, you must be 16 or over and a first-time buyer saving for your first home. You will need your National Insurance number.
Remember, the Help to Buy: ISA is a cash ISA and you can only add contributions into one cash ISA in a tax year.

To receive your bonus, you must:

  • close your account in branch in one transaction when you are ready to buy your first UK property (up to the value of £250,000 outside London and £450,000 inside London). Any costs incurred before the completion of the property purchase cannot be covered by the bonus
  • provide your Help to Buy: ISA closing documents to your conveyancer and they will claim the bonus on your behalf
  • Unlimited.
  • You won’t be able to claim any Help to Buy: ISA bonus on the funds you withdraw
  • Online
  • Branch
  • Phone

2.00% tax free/AER variable


Features and benefits

  • Your interest is paid tax free
  • Qualifying first time buyers can get a 25% bonus from the government’s Help to Buy scheme of up to £3,000
  • You can open this account with between £1 and £1,000. This must be received within 21 days of account opening and can be transferred from an existing ISA
  • You can pay in up to £200 in any calendar month. This should be paid by standing order and received by the 25th of the month (this can include the month you open your ISA)
  • If you’re planning to buy your first home with someone else who is also a first time buyer, you can both open a Help to Buy: ISA and both claim Government bonuses of up to £3,000

Bear in mind

To apply, you must be 16 or over and a first-time buyer saving for your first home. You will need your National Insurance number.
Remember, the Help to Buy: ISA is a cash ISA and you can only add contributions into one cash ISA in a tax year.

To receive your bonus, you must:

  • close your account in branch in one transaction when you are ready to buy your first UK property (up to the value of £250,000 outside London and £450,000 inside London). Any costs incurred before the completion of the property purchase cannot be covered by the bonus
  • provide your Help to Buy: ISA closing documents to your conveyancer and they will claim the bonus on your behalf

Withdrawals

  • Unlimited.
  • You won’t be able to claim any Help to Buy: ISA bonus on the funds you withdraw

Access

  • Online
  • Branch
  • Phone

Summary box for Help to Buy: ISA

1. What is the interest rate?

It’s a variable rate, as shown in the table below

Your balance Annual interest
Tax free
AER
£1+ 2.00% 2.00%
  • Your interest is paid annually on the anniversary of the account opening.

2. Can Halifax change the interest rate?

Yes.
As this account pays a variable rate of interest the rate can change over time. For example we might review the interest rate if the Bank of England bank rate changes. We’ll always let you know of any planned changes to the rate. Our account conditions explain when and how we do this.


3. What might the future balance be?

Below is an example of what the future balance might be, after interest has been paid:

Initial deposit Regular deposit Tax free rate Balance after 12 months
£1000.00 £100.00 2.00% £2232.00

This example assumes that:

  • You don’t withdraw any money and interest isn’t paid out of the account
  • The interest rate stays the same
  • You make regular deposits in the middle of each month

In addition, the UK government will pay a 25% bonus on your final balance. The minimum bonus of £400 is payable on closing balances of £1,600. The maximum bonus of £3,000 is paid on closing balances of £12,000 or more.


4. How do I open and manage my account?

This account can be opened and managed in branch, by phone or online.

Planning to buy your first home with someone else? If they’re also a first-time buyer, you can both open a Help to Buy: ISA and claim government bonuses of up to £3,000 each.

Opening this account

You are eligible for this account if you are:

  • 16 or over
  • resident in the UK (for tax purposes)
  • a first-time buyer saving for your first home

To open this account you will need to:

  • open the account in your sole name
  • open the account with between £1 and £1,000
  • ensure funds are received within 21 days of account opening

You can transfer funds to a Help to Buy: ISA from an existing ISA. For transferring in from a Halifax ISA, read our internal transfer guide (pdf) for more information. Otherwise, read our external transfer guide (pdf).

Managing this account

  • You can pay in up to £200 in any calendar month. This should be paid by standing order and received by the 25th of the month (this can include the month you open your ISA).
  • ISAs have an annual limit this tax year of £20,000 for new contributions, and you can’t pay more than this limit into any combination of permitted ISAs within the same tax year.
  • Bear in mind  the Help to Buy: ISA is a cash ISA and you can only add new contributions into one cash ISA in a tax year.
  • The Help to Buy: ISA allowance is lower than the overall ISA allowance. If you want to reach the full ISA limit in a tax year, you’ll have to invest any other new contributions into a stocks and shares ISA and/or a lifetime ISA and/or an innovative finance ISA.

5. Can I withdraw money?

Yes.
You can make unlimited withdrawals or close the account at any time in branch, but it’s important to note that you won’t be able to claim any Help to Buy: ISA bonus on the funds you withdraw.

If you choose to close the account and move the money to a non-ISA account, your savings will lose their tax-free status. The tax treatment depends on your individual circumstances and may change in future.


6. Additional information

Receiving your bonus

To start the claim for your bonus, you need to :

  • close your account in branch in one transaction when you are ready to purchase your first UK property (up to the value of £250,000 outside London and £450,000 inside London). Any costs incurred before the completion cannot be covered by the bonus.
  • provide your Help to Buy: ISA closing documents to your conveyancer and they will claim the bonus on your behalf

Definitions

Tax free is the rate of interest payable to you where your interest is exempt from income tax.

AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. As every advertisement for a savings product which quotes an interest rate will include an AER, it makes it easier for you to compare what return you can expect from your savings over time.


Your new Help to Buy: ISA is minutes away.

Open online now

Terms and conditions (PDF)

For further information you can visit: http://www.helptobuy.gov.uk/isa


Your new Help to Buy: ISA is minutes away


Common enquiries

Still unsure about something? We’ve collected some of the most frequently asked ISA questions and put them in one handy place.


You’re protected

Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS). For further information about the compensation provided by the FSCS, refer to the FSCS website at www.fscs.org.uk/. You can also visit our Financial Services Compensation Scheme page for more details.

FSCS Logo

Please note:

Rates of interest are subject to change. Rates effective from 0.00am on 15/11/2016.
For a definition of AER, tax free and other terms please view our savings glossary.