[x close]

Help to Buy: ISA

Save for your first property, tax-free. You could benefit from a Government bonus with access to your money whenever you need it.

This could be right for you if:

  • you are saving for your first UK residential property
  • you want to save tax-free in a cash ISA
  • you want to be able to withdraw money if you need to (withdrawals won't qualify for the Government bonus)
  • you want to open an account online

2.00%

tax-free† p.a./AER* variable**

Key Features

  • Open this Cash ISA with as little as £10
  • Available if you are aged 16 or over, resident in the UK for tax purposes, are a first time buyer and have never owned a UK residential property
  • Benefit from a Government bonus on your savings - the minimum bonus is £400 based on savings of £1,600 with a maximum bonus of £3,000 based on £12,000 saved.
  • Save up to £1,200 in the first calendar month of account opening and £200 per calendar month after that
  • Transfer in ISAs from other providers, subject to subscription limits – please check with your existing ISA provider for any applicable charges
  • Pay no tax on the interest you earn
  • Access your money whenever you like – no loss of interest for making withdrawals
  • Find out more in our Help to Buy: ISA guide (256 KB)
  • This is not a flexible ISA so subject to subscription limits
back to top

Summary Box

Account Name Help to Buy: ISA
What is the interest rate?

Current rates - Effective 25 October 2016

This product pays a variable** rate of interest of:

Annual
Tax-free† p.a. AER*
2.00% 2.00%

Whether you need to pay tax is dependent on your own personal circumstances and so may be subject to change in the future.

† Tax-free means that Interest is not subject to income tax.

* AER stands for the Annual Equivalent Rate and shows you what the interest rate would be if interest was paid and added each year. This will enable you to compare more easily the return you can expect from your savings over time.

** Variable rate of interest means that the interest rate payable on your account can change and can move both up and down.

Payment of interest

  • Interest is calculated daily on cleared balances
  • Annual interest is paid on the anniversary of account opening, so if you opened your account on 14th March, interest would be paid on 13th March the following year. It can be paid into the Help to Buy: ISA account, another Chelsea Building Society account or another building society or bank account.
Can Chelsea Building Society change the interest rate?

We can make changes to the interest rate on this account for particular reasons.

General Terms and Conditions (240 KB) 7 and 8 set out those reasons. Term 11 tells you how we will notify you of the changes.

What would be the estimated balance after 12 months based on a £1,200 deposit at account opening and £200 deposited per month?

£1,200 as an initial deposit and £200 each subsequent month saved at 2.00% tax free† p.a./AER* would lead to a balance of £3,446.10 at the end of the first 12 months.

This is provided for illustrative purposes only and does not take into account your individual circumstances.

How do I open and manage my account?

Eligibility
You have to be at least 16 years old. You must be a UK resident for tax purposes, or be a qualifying Crown employee or married to or in a civil partnership with a qualified Crown employee. The account can only be held in your name. You may only subscribe to one cash ISA in a single tax year.

To qualify for a Help to Buy: ISA you must be an “Eligible Customer” as defined in the Scheme Rules but in brief:

  • have a valid National Insurance number
  • be a first time buyer, and never owned a residential property in the UK
  • only hold one Help to Buy: ISA at any one time and not have previously received a Help to Buy: ISA bonus (unless this has been repaid in full).

For full details of the scheme rules please visit www.helptobuy.gov.uk/isa

Each Help to Buy: ISA account holder can only have one Help to Buy: ISA. If we identify that a second account is held with us this account will be closed and the latest issue e-ISA will be opened with these funds on your behalf.

Account opening and management
Accounts can be opened online at thechelsea.co.uk with a minimum of £10.

You will be able to check your balance, interest rates, view and make your transactions on your account online whenever you wish.

£10 is required to maintain the account after it has been opened.

There is no maximum balance for this account but the maximum amount eligible for a bonus is £12,000.

A maximum of £200 can be saved in each calendar month apart from the first calendar month of account opening when a further £1,000 may be added.

If more than the maximum monthly contribution of £200 is received the funds will be removed and we will return the overpayment by cheque.

The calendar month commences when the first deposit is received to the account and runs from the first to last day of each month. You do not need to save every month or save the same amount every month. If you set up a standing order to pay a monthly contribution, we recommend you set the date prior to the 24th each month to ensure that we receive the funds in time.

Account switching
In accordance with ISA regulations transfers can be made to or from a Help to Buy: ISA.

There are two types of transfer into a Help to Buy: ISA:–

1. A non-Help to Buy: ISA
We will not accept monthly ISA transfers from a Cash ISA into an existing Help to Buy: ISA in order to make the £200 monthly credits. ISA transfers should be for the opening allowance only.

2. From another provider’s Help to Buy: ISA
You remain subject to the maximum monthly deposit limit in the calendar month of transfer. Therefore if you have deposited £200 with your current provider no further deposits can be made in that month. No deposit should be made into the transferred account until we confirm that the transferred funds have been received and credited.

Can I withdraw money?

The Help to Buy: ISA account allows instant withdrawals, without loss of interest. Please note withdrawals and closure will result in the loss of your tax-free status, other than transfers to another ISA. Any withdrawals made will not qualify for the government bonus. This is not a flexible ISA so is subject to subscription limits.

Please be aware if a withdrawal is made from the account by CHAPS a charge of £23.50 will be incurred. Proof of name ID will be required.

Additional Information

Conditions for bonus payment
The bonus is paid by UKARcs, the scheme administrators, on behalf of HM Treasury.

When you are ready to buy your new home you will need to close your Help to Buy: ISA rather than simply withdrawing the balance. Closing the account will generate a Closing Letter. This letter will contain all the information that your conveyancer or solicitor dealing with the purchase of your new home will need to claim the bonus on your behalf.

You must operate your account within the scheme rules. The property you are buying must:

  • be in the UK and be a residential property
  • cost up to £250,000, or up to £450,000 if you are buying in London
  • not be a second home or a buy-to-let property
  • not be rented out after you buy it
  • you must claim your bonus within 12 months of closing your Help to Buy: ISA
  • be purchased with a mortgage. You can chose from a wide range of mortgages that are generally available in the market. If you choose to apply for a mortgage with us, holding a Chelsea Building Society Help to Buy: ISA is not a guarantee that you will be approved for a mortgage with us.

 

The Help to Buy: ISA can be re-opened if a house purchase falls through and is evidenced within 12 months of the event occurring. Your conveyancer or solicitor will be able to provide a letter of re-instatement to undertake this.

Interest earned from your ISA is tax-free and does not contribute to your Personal Savings Allowance.

If you fail to invest in your Cash ISA in a single year, under HM Revenue and Customs rules you will be required to complete a declaration form before you can invest further.

 

How to apply

You can only apply online for the Help to Buy: ISA , and there are no paper forms to complete and sign.

Apply

Complete our simple, straightforward online application form

 

If you feel you need additional support before applying for this account, please call us.

0345 744 6622*

ISA Transfer

Transferring an existing ISA to a Help to Buy: ISA

You may transfer funds either from an existing Chelsea Building Society ISA or from an ISA with another provider.

The initial transfer is subject to the maximum limit of £1,200 within the first calendar month of account opening. Please don’t begin making subscriptions into your Help to Buy: ISA until we’ve confirmed your transfer is complete.

If the existing ISA to be transferred is a Help to Buy: ISA then this is not subject to this limit.

Please note, under the Cash ISA regulations only one Cash ISA can be subscribed to per tax year.

To transfer an existing Chelsea Building Society ISA to a Help to Buy: ISA

First open your Help to Buy: ISA. You can open the Help to Buy: ISA online or by requesting an application form to be posted out to you. Once your Help to Buy: ISA is open and you have an account number, obtain an Internal ISA Transfer instruction form by calling us on 0345 744 6622. Complete the form with details of your existing and your new ISA and return it to us at the address below together with your passbook/certificate (if applicable).

Savings
Chelsea Building Society
Timbercombe House
Charlton Kings Business Park
Cirencester Road
Cheltenham
Gloucestershire
GL53 8DZ


We'll then write to you to confirm the requested funds have transferred to your Help to Buy: ISA.

To transfer an existing ISA (including another Help to Buy: ISA) held with another provider to a Help to Buy: ISA

First open your Help to Buy: ISA. You can open the Help to Buy: ISA online or by requesting an application form to be posted out to you.

If your new Help to Buy: ISA is opened online you will be asked at the end of the application process if you wish also to transfer an existing ISA to it. Please follow the online instructions.

If your new Help to Buy: ISA is opened by post, we will provide you with an account number for your new Help to Buy: ISA. To request the transfer you will need to complete and sign a Help to Buy: ISA Transfer Authority form, which you can obtain by calling us on 0345 744 6622. Please complete the form with details of your existing and your new ISA and return it to us at the address below:

Savings
Chelsea Building Society
Timbercombe House
Charlton Kings Business Park
Cirencester Road
Cheltenham
Gloucestershire
GL53 8DZ


Please allow up to 15 days for your current provider to send your funds by cheque. Once we’ve received the cheque, we’ll write to you to confirm the funds have been added to your new Help to Buy: ISA.

back to top