Help to Buy: ISA - Product Details
Open a Help to Buy: ISA and you can enjoy an attractive rate of tax-free interest, with an additional 25% Government bonus on the closing balance of the account, when you purchase your new home subject to Help to Buy: ISA Scheme Rules.
At the current time, this account can only be opened by new customers who live within the following postcode areas: NP, CF, SA, LD, WR, GL, HR & BS. Existing Society customers may open this account.
Summary Box - Key Product Information
| Account Name|| Help to Buy: ISA |
|What is the interest rate?|
|Can Monmouthshire Building Society change the interest rate? |
|What would the estimated balance be after 12 months based on £1,000 deposit?|
|How do I open and manage my account?|
|Can I withdraw money?|
Additional Product Information
- You can add to your savings at any time by cash, cheque or standing order.
- We accept transfers-in from other Help to Buy: ISAs only.
- When you are ready to purchase your property you must close your account. An eligible conveyancer will apply for the 25% Government bonus on your behalf.
- The bonus must be included with the funds consolidated at the completion of the property transaction. The bonus cannot be used for the deposit due at the exchange of contracts, to pay for solicitor's, estate agents fees or any other indirect costs associated with buying a home.
- The minimum Government bonus is £400.
- The maximum Government bonus is capped at £3,000.
- AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded each year.
- The Tax free rate is the contractual rate of interest payable where interest is exempt from income tax.
What is a Help to Buy: ISA?
- Help to Buy: ISA is a Government scheme which has been set up to help first time buyers save towards their the purchase of their first home.
- Help to Buy: ISA allows you to save tax-free, with the added bonus of knowing that the Government will top up your savings by 25% when you decide to purchase your first home.
- You can only open one account per person - if you’re buying a home with somebody else and you open one Help to Buy: ISA each, you will both be eligible for the Government bonus.
- The Government will pay up to a maximum of £3,000, subject to terms and conditions, on a balance of £12,000 in your account. To be eligible for the 25% Government bonus, you must have saved at least £1,600 at the time you decide to purchase your first home.
- When you are close to finishing your purchase, you will need to let Monmouthshire Building Society know and close your account. You will be provided with a closing statement within 7 days. Do not simply withdraw all of your money as this is not classed as closure of the account and you will not be able to claim your bonus.
- The Help to Buy: ISA can be used towards properties in the United Kingdom with a purchase price of up to £250,000 outside London and a purchase price of up to £450,000 within an eligible London borough, as specified in the Help to Buy: ISA Scheme Rules.
- There is no requirement to take out a mortgage with Monmouthshire Building Society having opened our Help to Buy: ISA.
- Once you have deposited into a Help to Buy: ISA you cannot deposit into another Cash ISA in the same tax year.
- You cannot claim the Government bonus on the funds you withdraw, unless the withdrawal is to close the account to claim the Government bonus.
Who can open a Monmouthshire Building Society Help to Buy: ISA?
To open a Help to Buy: ISA you must:
- Be aged 16 or over.
- Have a valid National Insurance Number.
- Be resident in the United Kingdom, or perform duties as a crown employee overseas or be in a marriage or civil partnership with such a person.
- Not have already subscribed to another Cash ISA in the current tax year.
- Only subscribe to one Help to Buy: ISA at any time.
- Not own or have previously owned your own home.
- Intend on buying a property to live in, which cannot be rented out or used as a holiday home.
- Have not received a bonus as part of the Help to Buy: ISA Scheme, unless the bonus has been repaid by the administrator in the event that your house purchase falls through.
How can I open a Help to Buy: ISA?
You can apply online or simply complete the application form
and take or post it to your nearest branch or agency office. If you
wish to open an account by post, you need to send us a personal cheque
drawn on your personal account, made payable to the applicant.
When you apply to open an account with us, we'll ask you for proof of your name and address, and an electronic check of your identity will be undertaken. This is required by law to verify the true identity of all new and existing customers. For full details please refer to our Proving Your Identity leaflet available from any branch and agency office. Identity checks play an important part in the fight against terrorism and other criminal activities.
Customers can now enjoy the convenience of managing their account(s) online using our 'My Accounts' service. For more information and to register, please click here.
How much can I save in a Help to Buy: ISA?
There is no minimum monthly investment amount. You must keep £1 in the account for the account to remain open.
Maximum investment limit
You can deposit up to £1,200 in the first calendar month of account opening. After the first month, you can deposit up to a maximum monthly subscription of £200 per calendar month.
Any additional funds, received over this amount will be returned by cheque or faster payment, if the payment was received electronically.
When you decide to purchase your first home, the Government will contribute 25% of the closing balance of the account subject to the following:
- The minimum Government bonus is £400 - this means closing balances below £1,600 will not be eligible for the bonus.
- The maximum Government bonus is capped at £3,000 - the maximum amount of savings eligible for the bonus is £12,000.
- The bonus must be included with the funds consolidated at the completion of the property transaction. The bonus cannot be used for the deposit due at the exchange of contracts, to pay for solicitors, estate agent’s fees or any other indirect costs associated with buying a home.
Can I make further deposits?
- You may add to your savings at any time, as long as you don’t exceed the £200 monthly subscription limit.
- Once the funds have been added to your account they count towards that month’s maximum deposit, even if you withdraw them. You can only deposit funds again if you have not reached that month’s subscription limit.
- Payments into the account must not cause you to exceed your current years ISA allowance.
- We will accept a transfer-in of funds from a Help to Buy: ISA from another ISA provider. However, we will not accept the transfer-in of ISA funds from other ISA providers (including those with Monmouthshire Building Society Cash ISA accounts) to pay monthly contributions.
How can I pay money in?
Adding to the account is easy because you can save by cash, cheque or standing order.
Funds can be added by calling in to any of our branch or agency offices with your
passbook and deposit.
Standing Order/Electronic Payment
You can save through a standing order from your bank account.
To arrange a standing order or other one-off electronic payment, you’ll need to give your
bank the following details:
Account Name: Monmouthshire Building Society
Sort Code: 40-34-27
Account Number: 10600717
Reference: XXXXXXXXXX (no spaces or hyphens - this is the Monmouthshire Building Society account number you wish to credit).
Can I make withdrawals?
- You can withdraw available funds from your account without notice, charge or loss of interest.
- A minimum balance of £1 is required, for the account to remain open.
- If you make a withdrawal you can only pay back into your Help to Buy: ISA up to the monthly subscription allowance. By making withdrawals, you may take longer to reach the amount you wish to save.
- You cannot claim the Help to Buy: ISA Government Bonus on the funds you withdraw, unless the withdrawal is to close the account to claim the Government bonus. Withdrawals are subject to the limits of the branch or agency you use. Details of our current withdrawal limits are displayed in branch and agency offices and are available from our website or on request from our Head Office.
- You can also make withdrawals by electronic transfer using the 'My Accounts' system. Online withdrawals using the 'My Accounts' system are subject to further terms and conditions.
- The bonus must be included with the funds consolidated at the completion of the property transaction. The bonus cannot be used for the deposit due at the exchange of contracts, to pay for solicitor's, estate agent's fees or any other indirect costs associated with buying a home.
If I withdraw funds, does that count against my subscription?Yes - you will only be able to pay back into your Help to Buy: ISA up to the £200 per month subscription allowance.
By making withdrawals, you may reduce or take longer to reach the amount you wish to save. For example, if you deposit the maximum monthly subscription of £200 and withdraw £100 in the same calendar month, you will not be able to deposit into the Help to Buy: ISA until the following calendar month. You will also not be able to claim any Help to Buy: ISA Government Bonus on the funds you withdraw.
What is the interest rate?
For details of our current interest rates, please see our separate Interest Rates Page.
How is the interest calculated and when is it paid?
- Interest is variable and calculated on a daily basis. Provided the account complies with the 'Regulations' all interest arising will be free of UK taxation. The taxation of ISAs can be changed at any time without notice by the Government.
- Interest can be credited to your account or paid annually into a suitable bank/building society account or suitable Monmouthshire Building Society account following the close of business on 31 March each year.
- Any interest paid to another account will not be included in the total when you close your account and claim the Government bonus.
- Interest paid into the account does not count towards the maximum monthly deposit.
Can I transfer my Monmouthshire Building Society Help to Buy: ISA to another ISA provider?
Yes – you may transfer your account without notice or loss of interest. If you are transferring your Help to Buy: ISA to another provider, you must transfer the entire balance and close your account.
Can I transfer-in the balance from another Help to Buy: ISA provider to a Monmouthshire Building Society Help to Buy: ISA?
Yes – Monmouthshire Building Society accept transfers-in from other Help to Buy: ISA accounts only.
you transfer-in to Monmouthshire Building Society during the first
month of account opening, you can deposit up to the maximum first months
subscription limit of £1,200. For example, if you open a Help to Buy:
ISA with another provider and deposit £100 and then decide to transfer
your Help to Buy: ISA to Monmouthshire Building Society, on the
condition this was in the first calendar month, you can deposit up to a
Please Note: If you make an ISA transfer, the maximum monthly subscription can either be paid into the new or existing ISA.
If you transfer-in to Monmouthshire Building Society after the first calendar month of account opening you can deposit up to the maximum monthly subscription limit of £200.
Under what conditions will my account be closed?
- When you are ready to purchase your first property you must close your account.
- If you no longer meet the account eligibility criteria or you break any of the Scheme Rules, we reserve the right to close your account. You will be given 30 days’ notice of any such action.
- If you transfer all of the money to another ISA which is not a Help to Buy: ISA (either with us or to another provider), we will treat this as your request to close the account.
How do I apply for the bonus?
When you are close to finishing your purchase, you will need to let Monmouthshire Building Society know and we will close your account. You will be provided with a closing statement within 7 days. Do not simply withdraw all of your money as this is not classed as closure of the account and you will not be able to claim your bonus.
What happens if my house purchase doesn't go ahead?
- If you close your Help to Buy: ISA, but you fail to purchase a property, an eligible conveyancer will give you a Purchase Failure Notice.
- If within 12 months of closing your Help to Buy: ISA, you wish to re-open a Help to Buy: ISA, and you give us a Purchase Failure Notice, we will allow you to open another Help to Buy: ISA provided we offer a suitable account and you are eligible. Please note : you will have to provide the Purchase Failure Notice to the same ISA provider who held your original account.
- Subject to the Scheme Rules, you will be allowed to deposit an amount up to the balance held in the account, at the time the account was closed. For example, if you closed the account with a balance of £8,000 you will be able to re-invest £8,000.
Can I cancel my application?
- There is a 14 day ‘cooling off’ period if you subsequently feel that the account does not meet with your requirements. Any monies received within this period will not count towards your ISA allowance and will be returned with interest paid tax-free.
- If you choose to close your Monmouthshire Building Society Help to Buy: ISA after the cancellation period, all deposits made into the account before closure will count towards your current tax year’s ISA allowance and cannot be reinvested.
Financial Services Compensation SchemeWe are part of the Financial Services Compensation Scheme (FSCS). Details of the scheme, and who is covered by it, are available here.
It is important that you read the 'General Terms & Conditions for Savings Accounts' and the account specific Terms and Conditions before deciding to open an account.