Help to Buy: ISA

Saving for your first home can be a challenge. With our Help to Buy: ISA you’ll get a 25% bonus from the government of up to £3,000 (on balances of £12,000) to help you take your first step on the property ladder.

Key features

  • A variable rate of interest of 2.25% tax-free p.a./AER
  • The government will give you a 25% bonus of up to £3,000 on the final balance saved in your Help to Buy: ISA
  • Minimum opening and operating balance of £1. In the first calendar month you can pay in a maximum of £1,200 into the account and you can deposit up to £200 per calendar month after that
  • You can make additional deposits into the account during any given month provided the £200 monthly limit is not exceeded
  • Transfers from other Cash ISAs are allowed but are subject to the maximum monthly deposit limits
  • If any deposits exceed the maximum monthly deposit, the whole amount of that payment will be returned to you
  • Withdrawals can be made at any time but these funds will not qualify for a bonus
  • The property you are buying must cost up to a maximum of £250,000 (£450,000 in the London area)
  • The Help to Buy: ISA is a Cash ISA. You cannot pay into another Cash ISA in the same tax year.
2.25% Tax-free p.a./AER Variable
Interest Tier Annual
£1-£1,200 to open, £200 per month AER 2.25% Tax–Free 2.25%

Summary Box

Account name

Help to Buy: ISA

What is the interest rate?

Interest Tier Annual Monthly
AER Tax Free AER Tax Free
Interest is variable and paid annually (calculated to 5 April and paid on 6 April each year). There is no monthly interest option.
£1-£1,200 to open, £200 per month 2.25% 2.25% N/A N/A

Can the West Brom change the interest rate?

We may change the interest rate we pay on the Help to Buy: ISA at any time.

If the interest rate on your account falls, and the balance in your account is £100 or more, we will personally notify you of the change.

All our interest rates are available in our branches and on our website.

If you would like to find out more please read Sections 5d) and 5e) of your General Terms and Conditions.

What would the estimated balance be after 12 months based on an initial deposit of £1,200 and 11 subsequent monthly deposits of £200?

If you deposited £1,200 in the Help to Buy: ISA and made 11 subsequent monthly deposits of £200, a total of £3,400 will be paid into the account and the estimated balance (including interest earned) after 12 months would be £3,451.76.

This example assumes the initial deposit of £1,200 is made on 1 October 2018, no withdrawals are made, all subsequent deposits of £200 are made on the first day of each month and there are no changes to the interest rate paid on the account over the 12 months. It is provided for illustrative purposes only and does not take into account your individual circumstances.

How do I open and manage my account?

This account can only be opened and used at a branch. You cannot use this account over the telephone, through the post or online.

You must be aged sixteen or over, a UK resident and a First Time Buyer as described in the Help to Buy: ISA Scheme rules.

You can open a Help to Buy: ISA with a minimum deposit of £1. The maximum amount you can pay into your Help to Buy: ISA in the first calendar month is £1,200 and £200 per calendar month after that. 

You can make any number of payments and you don’t have to make a deposit every month. The amount can vary each month, provided the monthly limit is not exceeded.

The maximum balance is £1,000,000 (including transfers from other Cash ISAs) and the minimum operating balance once the account is open is £1.

Deposits breaching the initial deposit limit of £1,200 or the permitted monthly superscription limit of £200 will be returned in full. Where subscription amounts are not used up in any given month, the remainder cannot be carried forward into future months.

If you choose to set up a standing order payment into your Help to Buy: ISA we recommend that it is set up to leave your bank account by the 23rd of the month. You can, however, pay in by cash or cheque in branch with your passbook or by electronic payment if preferred.

Interest must be added to the account and cannot be paid away.

You will only become eligible for the government bonus when you have invested at least £1,600 – in line with the maximum initial investment and monthly £200 subsequent investments.

Can I withdraw money?

You have full, easy access to your money without losing the tax benefit on the rest of your savings within the Help to Buy: ISA.

Withdrawn funds repaid back into the Help to Buy: ISA will still count towards your monthly allowance. For example if you deposited £150 and withdrew £100 you can repay a maximum of £50 into the account for that calendar month.

Please note: any money, including interest, withdrawn before the account is closed will not count towards the government bonus.

Additional information

Interest on this account is paid tax-free.

The government will give you a 25% bonus on the final balance saved in your Help to Buy: ISA towards the purchase of your first home, subject to the Help to Buy: ISA Scheme rules. The minimum bonus of £400 is payable on closing balances of £1,600 and the maximum bonus of £3,000 is paid on closing balances of £12,000 or more per person. The bonus will be available on home purchases of up to £250,000 outside of London and up to £450,000 in London.

Your solicitor or conveyancer may make a charge (up to a maximum of £50 + VAT) for the administration of your Help to Buy: ISA.

The Help to Buy: ISA bonus can only be claimed once your West Brom Help to Buy: ISA has been closed. Once this has happened we will send you your closing documents and tell the Scheme Administrator. The Help to Buy: ISA bonus must be claimed within 12 months of the account closing.

You must close your account in branch in one transaction when you are ready to purchase your first UK property. Any costs incurred before the completion cannot be covered by the bonus.

Did you know?

AER – stands for Annual Equivalent Rate and this illustrates the amount of interest paid on your account if it were to be paid and compounded once a year. All rates quoted are correct as at 01/10/2018.

Tax-free – is the contractual rate of interest payable where interest is exempt from income tax.

Identification – when you open an account with the West Brom we may need to confirm your identity. For full details on why this is required and the types of identification accepted please refer to the Society’s ‘Important information on identification’ leaflet.

Personal Savings Allowance – the Personal Savings Allowance was introduced on 6 April 2016 and means that the first £1,000 of overall savings interest for basic rate taxpayers and the first £500 for higher rate taxpayers are free from income tax. (There is no allowance for additional rate taxpayers.) From this date, we stopped deducting any tax from the interest paid to you (ISAs are tax-free). You are responsible for paying any tax due to HM Revenue & Customs (HMRC). For further information about the Personal Savings Allowance, please contact your local HMRC office.

Terms and Conditions

Here you will find both Product Specific and General Terms and Conditions.

The information provided in the Summary Box is a summary of the key features of the Help to Buy: ISA. You should also read the Specific Terms and Conditions and the General Terms and Conditions which relate to this account.

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