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Help to Buy: ISA

Summary Box

Account name Help to Buy: ISA (Issue 3)
What is the interest rate?

AER/tax-free (variable)
Tier Help to Buy: ISA (Issue 3) Help to Buy: ISA (Issue 3) for 1|2|3 World or Santander Select customers
£1+ 1.50% 2.00%


Interest is calculated daily and added to this account annually in March. Interest payments don’t count towards the monthly deposit limit, but do count towards the bonus calculation.

Government bonus

  • To be eligible for the government bonus you must be a first time buyer purchasing a UK property. The government bonus of 25% of the balance held in your Help to Buy: ISA is payable on closure when purchasing your first UK residential property.
  • The government bonus is only paid on balances (including interest) from £1,600 up to £12,000. Maximum bonus of £3,000 on a balance of £12,000 and minimum of £400 on a balance of £1,600 per person applies.
  • The bonus will be available on home purchases of up to £250,000 outside of London and up to £450,000 in London*. 
  • The bonus cannot be used for the deposit at exchange of contracts and can only be used at completion, where the conveyancer will pay the bonus to the seller as part of the purchase price.
Can Santander change the interest rate?

 

Yes, the rate can go up or down e.g. in response to industry and market conditions. If the rate goes down, we’ll let you know around 14 days before the rate changes.
What would the estimated balance be after 12 months based on a £3,400 deposit?
Account name Interest earned Balance after 12 months
Help to Buy: ISA (Issue 3) £34.40 £3,434.40
Help to Buy: ISA (Issue 3) for 1|2|3 World or Santander Select customers £45.86 £3,445.86

Estimates assume the account is opened and £1,200 deposit is made on 1st March and £200 is deposited on the 1st of every month thereafter, no change to interest rates and 25% government bonus payment excluded.

These illustrations are only examples and don’t take into account individual circumstances.

How do I open and manage my account?

To open the account you must be:

  • a UK resident, account can only be held in single name;
  • aged 16 or over and have a valid National Insurance number; and
  • a first time home buyer purchasing a UK property. You must not have owned a property anywhere in the world (for more information on what a first time home buyer means please visit helptobuy.gov.uk/isa).

To be eligible for the higher interest rate you must be a 1|2|3 World or a Santander Select customer at point of opening.

You can only pay into the Help to Buy: ISA if you are a first time buyer and you have not received a Help to Buy: ISA government bonus previously, unless the full amount of that bonus has been repaid to the administrator.

You can only hold one Help to Buy: ISA at any time per customer rather than one per home so those buying together may both be eligible for a government bonus.

Opening

  • Online and Mobile.
  • Call on 0800 032 4264.
  • Visit any Santander branch.

ISA transfers
Cash ISA (including Help to Buy: ISA) transfers in and out are allowed at any time.

Deposits
There is no minimum deposit. You can make an initial deposit of up to £1,200 in the first calendar month of funding and up to £200 per calendar month thereafter. For example, if you open the account in June and make your first deposit of £500 in August, you can pay another £700 until 31 August (totalling £1,200) and then pay a maximum of £200 a month thereafter.

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 isn’t  exceeded.

It is important that your payments reach us by the end of the calendar month. If they don’t they will count towards the following month’s allowance.

  • Standing order payments: will only be sent Monday to Friday.
  • Transfers from bank accounts: can take 2-4 hours and are sent Monday to Friday.
  • Cash/cheque deposits: will count towards the monthly deposit allowance determined by the date you pay them in.

If your deposit takes you over the monthly limit of £200 or the initial deposit limit of £1,200 it will be rejected in full and the bank you sent it from may charge you for taking it back.

If you’ve transferred in a Help to Buy: ISA from another provider you won't be eligible for the initial deposit of £1,200.

The Help to Buy: ISA is a cash ISA. You can only save up to the annual ISA limit in one cash ISA, one stocks and shares ISA, one innovative finance ISA or any combination of the three per tax year. A tax year runs from 6th April in one year to 5th April the next.

This product doesn’t accept additional permitted subscriptions.

Manage the account

  • Online and Mobile Banking, branch and telephone.
  • A certificate or email confirmation will be issued after account opening.
  • Statements are issued annually in March.
Can I withdraw money?

Yes, withdrawals can be made over the telephone or within a branch and won’t count towards the bonus. Withdrawals can’t be future dated.

Any money that you withdraw yourself from your Help to Buy: ISA will lose its tax-free status and if repaid back into the Help to Buy: ISA, will count towards your monthly deposit limit and your annual ISA limit.

We aren’t offering additional flexibility on ISAs but some providers are offering this feature. Those providers may allow you to replace funds that you have withdrawn with them without affecting the ISA limit.

Additional information

You can cancel the account within 14 days of opening and your money will be returned in full with interest.

The favourable tax treatment of ISAs may change in the future.

The Help to Buy: ISA is subject to availability. Rates and information correct as at 16 November 2016.

*Houses in the following Boroughs will be defined as ‘London’ for the purposes of the scheme; The City of London, Camden, Greenwich, Hackney, Hammersmith and Fulham, Islington, Kensington and Chelsea, Lambeth, Lewisham, Southwark, Tower Hamlets, Wandsworth, the City of Westminster, Barking and Dagenham, Barnet, Bexley, Brent, Bromley, Croydon, Ealing, Enfield, Haringey, Harrow, Havering, Hillingdon, Hounslow, Kingston upon Thames, Merton, Newham, Redbridge, Richmond upon Thames, Sutton and Waltham Forest.

 


Please read the full product details and terms & conditions before applying. Other accounts are available; see our ISA range to find out more
 

 

Transferring a Help to Buy: ISA from another provider to Santander
If you'd like to transfer a Help to Buy: ISA you've opened with another provider to Santander, you'll first need to open a Santander Help to Buy: ISA, then fill in our transfer form. You must transfer your existing Help to Buy: ISA in full when you open your account with Santander, and your existing Help to Buy: ISA will be closed as part of the transfer. If you're transferring a Help to Buy: ISA from another provider you won't be eligible for the £1,200 first month allowance with Santander.

Transferring from a cash ISA you've already funded to a Santander Help to Buy: ISA
You can only pay into one cash ISA per tax year. The Help to Buy: ISA is a cash ISA, so if you have current tax year subscriptions totalling £1,200 or less in another cash ISA, you'll be able to transfer these funds into a Help to Buy: ISA in the same tax year. You'll then be able to pay £200 a month into the Help to Buy: ISA in the current tax year, but you won't be able to continue to fund the cash ISA which you transferred the funds from. 

However, as the maximum initial deposit is £1,200, if you've already paid more than £1,200 into a cash ISA in the current tax year you can fund a Help to Buy: ISA using money you put into a previous tax year's ISA subject to the monthly subscription limits (up to £200 per month).
 
To transfer from a cash ISA to your Help to Buy: ISA, please fill in our transfer form
 
If you transfer an ISA in full to Santander and have built up previous tax year flexible allowances with your current provider, you'll lose that allowance when you move to Santander. If you want to use the flexible allowance you should re-deposit into your existing ISA before you transfer it to Santander.
 

Take a look at our Help to Buy: ISA Transfer Summary

 

 

Online Banking
Secure, 24/7 banking. Make payments, view statements and much more. For more information find out more.

Watch our Online Banking videos to learn more.

Mobile Banking
Bank from anywhere using our apps or by using m.santander.co.uk. For more information find out more.

Watch our Mobile Banking videos to learn more.

Text me the app

Telephone Banking
24/7 banking by phone. Speak to us during the day and in the evenings or use our automated service any time of day. Call us on 0800 9 123 123.

Branch
You can visit our extensive branch network  to speak to us.

Find out more
Online Banking
Mobile Banking
Telephone Banking  

There is no cash card or passbook for this account. A Help to Buy: ISA Certificate will be issued to you in the post after account opening. 
 
Buying your first home
When you are ready to purchase a property, you must request full closure of the Help to Buy: ISA in order to claim the government bonus. A closing statement will then be sent to you which you must give to your conveyancer who will then claim the bonus on your behalf. You have 12 months from the date of closure to submit the closing statement to the conveyancer to claim the bonus for the purchase of your property.

You can close your account by calling us, visiting a branch or to close your account by post please write to: Santander, Account Closures, PO Box 1109, Bradford BD1 5ZL.

Everything you need to know before you apply

We recommend reading the information in the documents below before you apply. You may like to save or print them so you can refer to them in the future.

To view these documents, you may need to download Adobe Reader

 

Please read the full product details and terms and conditions before applying.

You can apply for the Help to Buy: ISA if you are:

  • over 16 years of age and have a valid National Insurance number

  • a UK resident and

  • a first time buyer, who has not previously owned a residential property, and hasn't saved more than £1,200 in another cash ISA this tax year.

If you have saved more than £1,200 in another cash ISA this tax year, there may be additional steps you can take to meet the eligibility requirements. For more information, see the ISA transfers tab.

Help to Buy: ISA Help to Buy: ISA for 1|2|3 World or Santander Select customers
Apply Now Apply Now

Apply by phone
Call us on 0800 587 2764. We're open 8am to 9pm Monday-Friday and 8am to 4pm Saturday. 
 
Apply in a branch
Find your nearest branch or call 0800 085 1553 to make an appointment. We're open 8am to 9pm Monday to Friday and 8am to 4pm Saturday.

To get a higher rate of interest on your Help to Buy: ISA you must also be a 1|2|3 World or Santander Select customer.

A Santander 1|2|3 World customer is someone who holds one of our 1|2|3 current accounts, 1|2|3 Credit Card (including additional card holders) or the 1|2|3 Mini Account (in Trust). Trustees are not classed as 1|2|3 World customers. All customers must meet the eligibility for each product and 1|2|3 World offer. Find out more about 1|2|3 World

To join Santander Select you must have a current account with Santander and meet one of the following criteria: pay your main income of at least £5,000 per month into a Santander current account (excluding transfers from other Santander accounts), or maintain £75,000 in any Santander investment(s), savings or current account, or have a property worth at least £500,000 with a Santander mortgage. Find out more about Santander Select

Rates and information correct as at 1 November 2016.

Frequently asked questions

  • When you choose to close your Help to Buy: ISA (including transferring out in full to another cash ISA), you will be eligible to claim within 12 months of the date of closure a 25% government bonus on the balance of the account towards the purchase of your first home. Maximum bonus of £3,000 per person and minimum bonus of £400 per person applies.

  • To find your ISA’s interest rate you can use our Interest Rate Finder

  • You can make withdrawals from the account using branch or telephone and view the account in Online and Mobile Banking.

     

    You won't be able to claim the government bonus on any money you withdraw before you close your Help to Buy: ISA. Any money that you withdraw from your Help to Buy: ISA will lose its tax-free status and if repaid back into the Help to Buy: ISA will count towards your monthly deposit limit and will count towards your annual ISA limit.

  • To transfer in a Help to Buy: ISA or cash ISA from another provider, simply complete and send us the Help to Buy: ISA Transfer Form. Alternatively, you can visit your local Santander branch

     

    When we’ve received the completed form from you, we’ll need to contact your existing provider, so please allow up to 15 days for a Help to Buy: ISA transfer to take place, starting from when we have received the transfer form.

     

    To transfer your Santander Help to Buy: ISA to another provider, you’ll need to contact your new ISA provider.

     

    Transfers to your Help to Buy: ISA from stocks and shares ISAs are not allowed.

     

    Transfers to your Help to Buy: ISA from an innovative finance ISA are not allowed.

     

    You can only subscribe to one cash ISA, one stocks and shares ISA, one innovative finance ISA or any combination of the three each tax year. Funds paid into an ISA in the current tax year must be transferred in full. Any funds paid into an ISA in previous tax years can be transferred to an ISA, including your Help to Buy: ISA in full or part, subject to Help to Buy: ISA monthly limits.
     

  • The bonus will be available on home purchases of up to £250,000 outside London and up to £450,000 in London. Boroughs classified as London for the purposes of the Help to Buy: ISA are:

     

    The City of London, Camden, Greenwich, Hackney, Hammersmith and Fulham, Islington, Kensington and Chelsea, Lambeth, Lewisham, Southwark, Tower Hamlets, Wandsworth, the City of Westminster, Barking and Dagenham, Barnet, Bexley, Brent, Bromley, Croydon, Ealing, Enfield, Haringey, Harrow, Havering, Hillingdon, Hounslow, Kingston upon Thames, Merton, Newham, Redbridge, Richmond upon Thames, Sutton and Waltham Forest.

  • If the purchase of your house falls through, you are entitled to re-open your closed Help to Buy: ISA and re-deposit the funds removed at closure within 12 months of the closure date of the account. This is subject to you providing us with a Purchase Failure Notice which will be provided by the conveyancer in charge of the house purchase. 

     

    Your Help to Buy: ISA reinstatement subscription can be paid into a new or existing cash ISA, stocks and shares ISA or an Innovative Finance ISA and only a single reinstatement subscription will be allowed.

     

    To re-instate your Help to Buy: ISA, simply complete and send us the Help to Buy: ISA Re-Instatement Form along with the required documents stated on the form. Alternatively, you can visit your local Santander branch
     

  • If you change your mind within 14 days of opening this ISA you can cancel it and the money will be returned to you in full with interest and without penalty.

     

    If you transfer in funds from your existing ISA and subsequently cancel the account, your existing ISA provider may not accept the return of the ISA funds. In this case you can either continue to save with us or transfer your ISA in full to another provider. You will need to contact your new ISA provider to arrange the transfer. If you don't exercise your right to cancel; the cash ISA will continue with us.

  • Can't find what you are looking for? More help can be found at on the ISA FAQs page.

AER explained
AER stands for Annual Equivalent Rate and shows what the interest rate would be if we paid interest and added it to your account each year.

Tax Free explained
The tax free rate is the rate of interest payable where interest is exempt from income tax.

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