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West Brom launches Help to Buy ISA

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Building society the West Brom has brought a Help to Buy ISA to the market, with an interest rate of 2%.

The product doesn’t come top of the best buy tables in terms of interest available as there are a number of providers offering more competitive rates. For instance, Barclays offers 2.53% AER, according to Savings Champion, while Virgin Money pays 2.25% AER.

Product applications need to be made in branch. The building society has 37 branches across the West Midlands. As with all Help-to-Buy ISAs, up to £1,200 can be deposited in the first calendar month and then up to £200 in subsequent months. Interest is paid annually and must be credited to the account. Transfers in from other Help to Buy: ISAs and non-Help to Buy: ISAs are accepted.

The account qualifies for the government’s 25% contribution as long as it is put towards a first home, costing £250,000 or less – or up to £450,000 for properties in London.

Sophie Dwyer, the West Brom’s product manager for savings, said: “We have a good track record of lending to first-time buyers to support their aspirations for homeownership, so adding a Help to Buy ISA to our portfolio is a logical next step. It means we can offer assistance to those customers who want to get onto the property ladder but still need time to save the necessary funds for a deposit.”

The minimum government bonus payable to a saver with a Help to Buy: ISA is £400.  In order to qualify, the account balance must be at least £1,600 at the time of property purchase. The maximum bonus receivable is £3,000, requiring savings of £12,000.

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