What Is the Current Barclays Help to Buy ISA Interest Rate?

The Help to Buy ISA has long been a reliable stepping stone for first-time homebuyers, especially in high-cost areas like London. Barclays, a leading UK bank, continues to support existing account holders under this now-closed scheme.

Although new Help to Buy ISAs are no longer available, many savers are still contributing monthly and taking advantage of competitive interest rates and government bonuses. In 2025, understanding the current Barclays Help to Buy ISA interest rate and how it compares to other savings options is more important than ever.

How Does the Barclays Help to Buy ISA Work in 2025?

The Barclays Help to Buy ISA remains available to those who opened their account before the official cut-off date in late 2019. These account holders can continue to contribute up to £200 per month until 30th November 2029.

The savings accumulated in the account can be used towards the purchase of a first home, and eligible buyers receive a 25% bonus from the government on their total contributions up to a maximum of £3,000.

Barclays handles the day-to-day administration of the account, allowing users to track savings through online banking and mobile apps. Interest is added to the account monthly, and because it’s a cash ISA, any interest earned is tax-free.

The combination of monthly contributions, compounding interest, and the government bonus make it a worthwhile savings tool for those still working towards their first property.

What Is the Current Interest Rate Offered by Barclays?

As of September 2025, Barclays offers a 2.55% AER (Annual Equivalent Rate) on its Help to Buy ISA accounts. This is a variable interest rate, meaning it can fluctuate depending on wider market conditions and decisions by the Bank of England. Barclays reviews and adjusts the rate periodically to remain aligned with economic trends and customer expectations.

This rate positions Barclays as a competitive player among the few providers still managing active Help to Buy ISA accounts. Compared to high street alternatives, Barclays maintains a relatively attractive offering for long-term savers. All interest accrued is tax-free, and because it compounds monthly, savers benefit from consistent growth.

Has the Barclays Help to Buy ISA Interest Rate Changed Recently?

The interest rate offered by Barclays has gradually increased over the past few years. This reflects broader economic adjustments, especially rising base rates in response to inflation.

For context, Barclays offered 2.00% AER in early 2023, which rose to 2.30% by the start of 2024 and then to 2.45% by mid-year. The most recent update in September 2025 brought it to the current 2.55% AER.

These modest but steady increases indicate a favourable environment for savers. Although the scheme is closed to new customers, the ongoing support and rate adjustments suggest Barclays is committed to rewarding those who continue saving for a home.

How Does the Government Bonus Work with Barclays Help to Buy ISA?

One of the key attractions of the Help to Buy ISA was the government’s 25% bonus, which remains available through Barclays for eligible account holders.

When the time comes to purchase a home, the government will contribute 25% of the savings in the account, provided the property is within the eligible price range £250,000 outside London and £450,000 within the capital.

Importantly, this bonus is not automatically applied during the savings period. Instead, it is requested during the purchase process, and Barclays facilitates the application by providing a closing letter and transferring the final account value to a solicitor or conveyancer.

The solicitor then applies for the bonus through the government’s system. The process is straightforward, and Barclays provides support throughout to ensure smooth handling.

When Does the Help to Buy ISA Scheme End for New Accounts?

The Help to Buy ISA scheme officially closed to new applicants on 30th November 2019. However, this closure only affects new accounts. Existing account holders, including those with Barclays, can continue saving and contributing until 30th November 2029. The final deadline to claim the government bonus is 1st December 2030.

This extended timeline allows savers plenty of time to build up their deposit. Those with active accounts should continue monitoring interest rates and savings limits to ensure they maximise the benefit before the scheme’s final phase-out.

What Are the Pros and Cons of Choosing Barclays Over Other Providers?

Barclays remains a strong contender among Help to Buy ISA providers, largely due to its stable interest rate and comprehensive digital tools. Customers benefit from robust online banking platforms, allowing them to track balances, set up regular payments, and monitor interest accrual in real time.

However, there are trade-offs. While Barclays’ 2.55% interest rate is competitive, it may not always be the highest on the market. Some smaller building societies or digital banks may offer marginally better rates, though they may lack the infrastructure and customer support Barclays provides.

Since transfers between Help to Buy ISAs are no longer generally accepted, those already with Barclays are encouraged to make the most of their existing account rather than chase marginal rate differences.

Is the Help to Buy ISA Still a Good Option in 2025?

Despite its closure to new applicants, the Help to Buy ISA continues to serve as a valuable savings vehicle for those who already opened an account. In 2025, the combination of tax-free interest, regular monthly contributions, and the government bonus creates a powerful incentive to continue using the account.

Alternatives like the Lifetime ISA (LISA) have emerged as the go-to option for new savers, offering similar 25% bonuses but with higher annual contribution limits and dual-purpose use (home buying and retirement).

That said, for existing Help to Buy ISA holders, the scheme still presents strong value particularly for those nearing their savings goals and planning to buy within the next few years.

Can You Switch Your Help to Buy ISA to Barclays Now?

Unfortunately, it is no longer possible to open a new Help to Buy ISA with Barclays or transfer one from another provider. The closure of the scheme to new applicants also applies to transfers. This means that savers must continue with their current provider unless they choose to withdraw funds and potentially forfeit their eligibility for the bonus.

Barclays does allow Help to Buy ISA customers to manage their accounts alongside other savings products, and their customer service team can provide guidance if savers are considering consolidating or transitioning to different ISA products. However, the Help to Buy ISA must remain untouched if the government bonus is to be claimed upon a property purchase.

Barclays vs Other Help to Buy ISA Providers

This table highlights that while Barclays offers a slightly higher rate than most major banks, the differences are minor, and all operate under the same scheme rules.

Conclusion

For existing savers, Barclays remains a dependable and rewarding option for Help to Buy ISAs in 2025. The interest rate of 2.55% AER stands out among high-street banks, and the bank’s technology-driven account management tools make it easy to track progress toward home ownership.

While no new applications or transfers are allowed, those already saving with Barclays have access to one of the best-maintained Help to Buy ISA products available today.

As long as savers stay informed about contribution limits, deadlines, and bonus eligibility, this account continues to be a practical and valuable part of the journey to owning a first home in London and across the UK.

FAQs

Can I continue adding money to my Barclays Help to Buy ISA this year?

Yes, if you opened your account before 30 November 2019, you can continue adding up to £200 per month until 30 November 2029.

Is the current interest rate from Barclays fixed or variable?

Barclays offers a variable interest rate, currently set at 2.55% AER. This means it can change depending on market conditions.

Do I need to apply separately for the government bonus?

Yes, the bonus is claimed during the property purchase process. Barclays provides a closing statement, and your solicitor submits the claim.

What property price limits apply for the bonus in London?

To qualify for the government bonus, the home you purchase must be worth £450,000 or less if located in London.

Can I switch my Barclays Help to Buy ISA to another bank?

No, the scheme is closed to transfers between providers. You can only continue using the provider with whom you opened your account.

What happens if I withdraw money from my Help to Buy ISA early?

You can withdraw funds at any time, but doing so may reduce the total amount eligible for the bonus when purchasing a property.

Are there better options than the Help to Buy ISA now?

The Lifetime ISA is a strong alternative for new savers. It also offers a 25% bonus but has a higher annual contribution limit and can be used for retirement.