Mass changes to savings products were announced in this week's budget including a new Help to Buy Isa, extensions to the flexibility of Isas and a tax-exempt Personal Savings Allowance.
Chancellor George Osborne announced an extension to the government's Help to Buy scheme with a new Help to Buy Isa for first-time buyers, pledging to top up monthly savings by 25 per cent, translating into a £50 bonus on each £200 of savings.
The new product, which goes lives in the autumn, could mean a government giveaway of up to £3,000 on maximum savings of £12,000 for a first time buyer, tax free. Savers will be able to make a maximum initial deposit of £1,000 into the new account and then deposits of up to £200 a month, receiving a £50 government top-up, up to the £12,000 limit. The bonus will be paid out when buyers purchase their first home and applies to properties of up to £450,000 in London and up to £250,000 outside London.