Halifax slashes Help to Buy ISA rate to 2.5%
Halifax has cut the rate it pays on its Help to Buy ISA from 4% to just 2.5%.
Existing account holders will still earn 4%, but could see a rate drop in the future.
The providers offering the highest interest rates are now Santander at 4% and Virgin Money at 3%.
Santander increased the interest rate on its Help to Buy ISA in March to match Halifax.
A Halifax spokesperson said:
“We regularly review our savings range and make changes in line with the market and our competitors.
“As the brand to offer a significantly higher rate of interest than its competitors when Help to Buy ISA launched in December 2015, we have seen unprecedented demand. This change maintains the rate for existing customers, and keeps Halifax within the top three rates when compared to its main competitors.”
The government's Help to Buy ISA scheme allows savers to deposit up to £1,200 within the first calendar month of funding the account, and then up to £200 monthly thereafter. Once the account has a balance of £1,600 it qualifies for a government bonus of 25% up to £3,000 per person.
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