Voice of London

The accounts, aimed at saving for a first home deposit, will stop all the applications today at midnight.

The Help to Buy: ISA has been around since December 2015 and gave the opportunity to first-time buyers aged over 16 years old to save with the income free of tax. The government would then top up with a bonus of 25%.

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Since the launch of the scheme, nearly 150,000 properties have been bought using the Help to Buy: ISA and almost 200,000 bonuses have been paid, data from the HM Treasury show.

How does it work and who is eligible?

First home buyers can profit by saving their money in the Help to Buy: ISA, a basic account that the government will boost by 25% up to a maximum of £3000.

The account can be opened by savers who live in the UK, and are first-time buyers over the age of 16.

Buyers can save up to a maximum of £200 monthly, however, in their first month, they can pay up to £1200. The Government will then add an extra 25% monthly, meaning that for every £200 they will add £50.

Savers will not receive their bonuses until they buy their first home. The 25% bonus can only be used to purchase the home.

The deadline to claim the bonus is 1st December 2030. Savers that want to withdraw their money for other purposes can do so at any time, however, they will not receive the bonus.

How to open the account? 

The Voice of London visited a bank to open a Help to Buy: ISA account on Wednesday.

All ranges of banks and building societies can help you to set up the account, however, the best banks with the highest AER (Annual Equivalent Rate) are Barclays and Nationwide Building Society.

Our team went to Barclays after booking an appointment as they did not have a previous account with the branch. The whole process was very easy and quick so especially young savers can set one up.

Savers already registered with the bank can easily open the Help to Buy: ISA online.

Words: Giulia Frau | Picture: Unslpash | Infographic: by Giulia Frau data collected from HM Government Help to Buy: ISA