Halifax has slashed the interest rate of its Help to Buy ISA from 4% to just 2.5% for new customers. Existing customers who already have a Help to Buy ISA with Halifax will be unaffected by the change and will continue to earn the higher interest rate.
If you’ve not already got a Help to Buy ISA but you’ve been thinking of opening one to save for a deposit, your next best bet might just be Santander which continues to offer 4% interest.
Who will be affected by the change?
Anyone who opens a Halifax Help to Buy ISA on or after 3rd May will receive the lower interest rate of 2.5%. Those that signed up before the 3rd May will continue to receive 4%.
If I open a Help to Buy ISA with Halifax will I still get the government top up?
Yes. The 25% government top up will remain unaffected. Only the interest rate will change.
Is there a risk other banks might change their rates too?
Whenever a bank offers an account with a ‘variable’ rate, there is always a risk the interest could change. There’s nothing to stop banks from changing interest rates for existing customers as well as new ones.
If you don’t have a Help to Buy ISA yet and you’re worried Santander might lower their interest rate for new customers too, it could be worth booking an appointment in branch or signing up for the Help to Buy ISA as soon as possible.
Is a Help to Buy ISA worth it?
Yes. To learn more, take a look at my Help to Buy ISA guide or find out why you should get a (high interest) Help to Buy ISA even if you’re not sure whether you’ll buy a house.
