What is a Help to Buy ISA: Which? Money guide

http://www.which.co.uk/money/mortgage...

Help to Buy ISAs are now available to first-time home buyers.

Watch our two-minute video for a quick rundown on how Help to Buy ISAs work, as well as the benefits and potential drawbacks.

Like other ISAs, any savings deposited won't be taxed, but the big benefit is that for every £200 you save the government will pay you a £50 bonus towards the purchase price of a property.

The government will effectively give you a 25% top-up on savings of up to £12,000, so you could earn a maximum bonus of £3,000.

Savers can make an initial deposit of up to £1,000 to open the account, and can subsequently pay in up to £200 each month afterwards.

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