Virgin Money has become the latest provider to launch a Help to Buy ISA.

It offers an interest rate of 3.00% tax-free.

Virgin Money has introduced the latest in its range of ‘Three Minute Money’ videos, designed to explain how the Help to Buy: ISA works. This is available at http://virg.in/xETE4.

For first time buyers who want to save more each month than the Help to Buy ISA limit, Virgin Money has launched a new Saving to Buy account, offering interest of 1.30% gross. It provides a way for savers to ensure they never miss the opportunity to maximise their tax-free allowance as they can set up a regular transfer from their Saving to Buy account into their Help to Buy: ISA. Saving to Buy accounts can be opened with £1 and there is a maximum balance of £30,000.

Zack Hocking, head of savings at Virgin Money, said: “The launch of the Help to Buy: ISA scheme is fantastic news for first time buyers, and with a competitive interest rate of 3.00% we are getting right behind the next generation of homeowners.”