What is a Help to Buy ISA?

A Help to Buy ISA is a government-backed, tax-free savings account designed to help first-time buyers purchase a home by providing a 25% bonus on savings. Although new accounts closed on 30 November 2019, existing savers can contribute up to £200 per month until November 2029 and claim a bonus of up to £3,000 until November 2030. You can save a maximum £200 per month (except the first month when you would have been permitted a £1,000 saving) and you need to have saved at least £1,600 to get a bonus (minimum £400). The maximum bonus available is £3,000, earned on savings of £12,000.