The government’s Helpt to Buy Isa scheme was launched on Tuesday, with 14 institutions offering the product.
Help to Buy Isas give first time buyers the opportunity to save up to £200 a month that the government will top up by 25 per cent, up to a maximum of £3,000.
Economic secretary to the Treasury Harriett Baldwin said: “First time buyers who are doing the right thing and trying to save have struggled due to low interest rates since the financial crisis.”
The Isa is provided by institutions such as Barclays, Aldermore, Nationwide, Virgin Money and Yorkshire Building Society.
The best rate is offered by Halifax, which pays 4 per cent.
