First time buyers across the UK can now take advantage of Santander’s new market-leading Help to Buy ISA rate available from 14th March.
The Help to Buy ISA, launched in December as part of the Government’s new initiative to help people saving for their first home, will now pay a tax free interest rate of 4.00% to both new and existing customers. Customers who already have a Help to Buy ISA can also transfer to Santander‘s ISA to take advantage of the higher rate.
Helen Bierton, Head of Savings at Santander said: "Santander is really pleased to increase our support for customers saving towards their most important purchase by offering a market-leading rate to help first time buyers in the UK onto the property ladder. 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."
Santander's Help to Buy ISA
Savers can deposit up to £1,200 within the first calendar month of funding the account, and then up to £200 monthly thereafter. Once the account has a balance of £1,600 it qualifies for a government bonus, meaning even those looking to purchase a property within the next three months could benefit from the scheme.
The Government will pay a bonus of 25% up to £3,000 per person, so boosting a Help to Buy ISA savings pot of £12,000 to £15,000, upon the purchase of a first home. Each first time buyer can have their own account; so a couple could receive a government bonus of up to £6,000.
Savers who have paid into a cash ISA held with Santander or another provider in this tax year can transfer the funds into the Help to Buy ISA subject to the Help to Buy ISA funding limits. Funds must be transferred in full and deposits can no longer then be made into the cash ISA.
- Interest rate of 4.00% for all customers.
- Available to first time buyers in the UK.
- Deposits of up to £1,200 allowed within the first month of funding the account, up to £200 monthly thereafter.
- Transfers in of up to £1,200 from another cash ISA and transfers in from other Help to Buy ISAs allowed
- Government contributions of 25% up to £3,000 per person upon purchase of a first home.
Customers can open the account by calling 0800 234 6065, and can go into branch to make an application. More information is available on our website at http://www.santander.co.uk/uk/isas/help-to-buy-isa.
|Help to But : ISA previous range||1.50%|
|1|2|3 Help to Buy ISA (for 1|2|3 World & Select customers) previous range||2.00%|
|Help to Buy: ISA New range from 14th March||4.00%|
All rates are AER/Tax Free (variable)
The information contained in our press releases is intended solely for journalists and should not be used by consumers to make financial decisions.
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Santander UK is a financial services provider in the UK that offers a wide range of personal and commercial financial products and services. It has brought real competition to the UK, through its 1|2|3 products for retail customers and relationship banking model for UK SMEs. As at 31 December 2015, Santander UK was one of the most switched to banks. The bank serves more than 14 million active customers with c. 20,000 employees and operates through 857 branches and 70 regional Corporate Business Centres. Santander UK is subject to the full supervision of the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) in the UK. Santander UK plc customers are protected by the Financial Services Compensation Scheme (FSCS) in the UK.
Banco Santander (SAN.MC, STD.N, BNC.LN) is a leading retail and commercial bank, based in Spain, with a meaningful market share in 10 core countries in Europe and the Americas. Santander is the largest bank in the euro zone by market capitalization and among the top banks on a global basis. Founded in 1857, Santander had EUR 1.51 trillion in managed funds, 13,000 branches and 194,000 employees at the close of 2015. In 2015, Santander made attributable profit of EUR 5,966 million, a 3% increase with respect to the previous year.