The West Brom Building Society has added a Help to Buy: ISA to its range of savings accounts.
Available to buyers saving specifically for their first home, the product offers an interest rate of 2.00% tax-free gross p.a/AER variable.
Customers could also qualify for a bonus payment of 25% from the government to put towards their home-buying plans.
Product applications can be made in any West Brom branch and accounts are also managed through the Society’s branches. Up to £1,200 can be deposited in the first calendar month and then up to £200 in subsequent months.
Interest is paid annually and must be credited to the account. Transfers in from other Help to Buy: ISAs and non-Help to Buy: ISAs are accepted.
Sophie Dwyer, the West Brom’s product manager for savings, said: “We have a good track record of lending to first time buyers to support their aspirations for home ownership, so adding a Help to Buy: ISA to our portfolio is a logical next step.
“It means we can offer assistance to those customers who want to get onto the property ladder but still need time to save the necessary funds for a deposit. If they can secure an additional contribution from the government, as well as a competitive rate of interest, then hopefully that savings goal can be achieved a little more quickly.”
The minimum government bonus payable to a saver with a Help to Buy: ISA is £400. In order to qualify, the account balance must be at least £1,600 at the time when the customer is ready to purchase their property. The maximum bonus receivable is £3,000 which would require savings of £12,000.