First-time buyers can now get 4% interest from Santander’s Help to Buy Isa as the bank has today matched Halifax’s market leading best-buy rate.
The move is a dramatic improvement on Santander’s previous Help to Buy Isa, which paid 1.5% as standard, rising to 2% for 123 current account and/or credit card customers.
People who already have a Santander Help to Buy Isa will automatically be upgraded to the new rates.
The account also allows transfers in, meaning Help to Buy Isa savers with other providers can switch to the Santander account, providing they transfer their savings in full.
As with all Help to Buy Isas, the account is only available to people who have never owned a property. Savers can deposit £1,000 when they open an account, and then up to £200 per month. After saving £1,600 or more, customers are eligible for a 25% savings bonus from the government when they complete their property purchase, with the bonus cash capped at £3,000.
For more on this, see Help to Buy Isas: How they work.
Helen Bierton, head of savings at Santander says: “Our new Help to Buy ISA offers the opportunity to build a tax-free savings pot and then benefit from a boost to those savings with the government bonus.”
The Santander Help to Buy Isa is available in branch or by phone, with further information available on Santander’s website.
Help to Buy Isas are probably the best tool for anyone looking to save a deposit for their first property.
This Santander account is the joint best on the market, alongside Halifax. The next best is Virgin Money at 3%.
See Help to Buy Isas: which account should I get? for a roundup of what’s on offer.
As the government’s 25% savings bonus is paid on interest as well as money that’s been deposited, these accounts will help savers sooner reach the £12,000 target to get the maximum £3,000 bonus.