Help to Buy ISA: how does it work and can you still use one?

If you're saving for your first home, you might have heard of a Help to Buy ISA. It was a government-backed savings account designed to help first-time buyers build up a deposit, with a little extra help from the government along the way. 

The scheme closed to new applicants on 30 November 2019, so you can't open a new Help to Buy ISA today. However, if you already have one, you can continue to save into the account and receive the government bonus.  

That extra money could make a real difference when you're trying to get onto the property ladder, particularly when you're already juggling the cost of a deposit, legal fees and everything else that comes with moving home. 

A Help to Buy ISA works like a regular cash savings account, but with a government bonus on top when you use your savings to buy an eligible first home. 

With a Help to Buy ISA, you can save up to £200 each month. And for every £200 you save, the government adds another £50, giving your savings a 25% boost when you're ready to buy your first home. 

You'll also earn interest on the money in your account, depending on the interest rate offered by your provider. 

There are a few limits to be aware of: 

• Maximum monthly saving: £200 
• Minimum savings to qualify for a bonus: £1,600 
• Maximum eligible savings: £12,000 
• Minimum government bonus: £400 
• Maximum government bonus: £3,000 

Here's how the bonus could add up towards your first home:

Your savings	Government bonus	Total
£1,600	£400	£2,000
£4,000	£1,000	£5,000
£8,000	£2,000	£10,000
£12,000	£3,000	£15,000