1st blog post, so Ill start it on the one bank account all future home owners should immediately invest into…
The Help to Buy ISA is a government scheme that will boost savings by 25%. This translates into every £200 you invest is matched by £50 from the government.
The maximum amount that can be boosted by the scheme is as follows (I definitely recommend investing the maximum amount possible):
Initial investment of £1200 and then £200 every month afterwards, which would work out like:
|Timeline||Monthly maximum||Cumulative||With added Bonus|
So by the end of the 1st year, you could potentially invest £3,400 and then receive a £850 bonus…not bad at all.
The Scheme can be invested into for a maximum of 5 years, at which point £12000 would be invested by me or you, and the government would contribute £3000 to make a grand total of £15000 towards a deposit.
The ISA is open to anyone over the age of 16, as long as you are putting the money towards a first home under £250k (£450k in London). Also, the scheme can be used on any property for sale unlike some other government schemes.
Where do I get a H2B ISA?
|ISA Provider||Interest rate (AER)|
From the table above, its easy to tell that the ISA Provider with the best interest rate is Halifax with 4% AER. There isn’t really much point in going with any of the other providers.
4% is a great interest rate for any account (its the best ISA rate ive seen for a while) and so putting more than £200 / month into the account would be beneficial.
Don’t feel you have to stick with the provider that you already have a current account with, there is no brownie points for being loyal to a bank. Halifax provides the best interest rate and so is the bank you should open the ISA with.
This is only the case if you like to have a minimum of bank accounts and keep all savings within one account.
If you like the idea of squeezing as much interest out of the banks as possible then read some of my future posts about high interest current accounts such as the TSB Classic account.