Help to Buy Isas - which account should I get?

Published by Adam Williams on 01 December 2015.
Last updated on 15 November 2017

Help to Buy Isas offer a boost to first time buyers struggling to save for a deposit.

The main attraction of a Help to Buy Isa is that the Treasury will give you a bonus of up to £3,000 when you buy your first home. You can save up to £200 each month, plus an additional £1,000 when you first open an account. Save £12,000 you will earn the maximum £3,000 bonus.

 If you’re able to save more than the annual Help to Buy Isa limit then you consider an account that lets you pay into a second Cash Isa as well, like Nationwide.

Finding an account paying a decent interest rate will also help you build your deposit faster and in this article we pick out the best Help to Buy Isa deals. These are our Moneywise Best Buys.

Where can I get the best Help to Buy Isa?

Barclays Help to Buy Isa 2.27%
The best deal available across the UK. It allows monthly interest payments, which can be useful if you want to switch of close the account early. Can be opened in branch and over the phone.

Buckinghamshire Building Society Help to Buy Isa (Issue 2) 2.25%
This building society account is open to everyone and can be opened by post and in branch. It pays interest monthly.

Nationwide Help to Buy Isa 2%
If you can save more than £200 a month this is worth considering. It’s one of a few providers that lets you keep the rest of your yearly allowance inside a separate Cash Isa - this is sometimes known as a split Isa. It can be opened online and in branch.

Other providers offering Help to Buy Isas at 2% include Halifax, HSBC, NatWest, Virgin Money and Yorkshire Building Society but these don't allow split Isas. The Progressive Building Society also offers a 2% rate, but only to people in Northern Ireland.

Local Help to Buy Isa deals

Some smaller building societies also offer deals to people who live in the local area. The accounts below all offer a higher rate of interest than our top pick from Barclays, but you will need to live close to the provider to take advantage.

Penrith Building Society Help to Buy Isa 3%
This is the best rate on the market, but you have to live in Cumbria to open this account.

Cumberland Building Society Help to Buy Isa (Issue 2) 2.75%
Account must be opened in branch. These are only located are in Cumbria, Lancashire and southern Scotland.

Darlington Building Society Help to Buy Isa 2.55%
This account is also restricted. You must live in a DL, DH, SR, TS, YO or HG postcode area to apply.

Tipton & Coseley Building Society Help to Buy Isa 2.5%
Only available to residents of the West Midlands who live in the B, DY, WS or WV postcode areas.

Newcastle Building Society Help to Buy Isa 2.3%
This account must be opened in one of the society's branches. These are located across the North East of England and Cumbria.

How are Moneywise Best Buys selected?

We look across as much of the market as possible to find the best deals using industry data from Defaqto.

All our picks are nationally available - online, by post or by phone. We try and pick products that are available to both new and existing customers, but we’ll highlight some offers for existing customers if they’re much better than what else is on offer.

Unless rates are significantly higher than on other accounts, we avoid products that pay an initial bonus (which is normally a euphemism for a rate cut after 12 months), or those with tiered rates (these may not pay the advertised interest rate if your balance rises above or falls below a set amount).

All these savings accounts are covered by the FSCS unless otherwise specified. We will prioritise deals from UK-based banks. If your bank is licenced by another European country, savings up to €100,000 will be protected, but by the government where the bank is headquartered, rather than the UK authorities.

We reserve the right to use our discretion at all times.