How it works

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Help to Save is a type of savings account. It allows certain people entitled to Working Tax Credit or receiving Universal Credit to get a bonus of 50p for every £1 they save over 4 years.

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Help to Save is backed by the government so all savings in the scheme are secure.

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How payments work

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You can save between £1 and £50 each calendar month. You do not have to pay money in every month.

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You can pay money into your Help to Save account by debit card, standing order or bank transfer.

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You can pay in as many times as you like, but the most you can pay in each calendar month is £50. For example, if you have saved £50 by 8 January you will not be able to pay in again until 1 February.

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You can only withdraw money from your Help to Save account to your bank account.

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How bonuses work

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You get bonuses at the end of the second and fourth years. They’re based on how much you’ve saved.

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What happens after 4 years

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Your Help to Save account will close 4 years after you open it. You will not be able to reopen it or open another Help to Save account. You’ll be able to keep the money from your account.

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You can close your account at any time. If you close your account early you’ll miss your next bonus and you will not be able to open another one.

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What you’ll get

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You can earn 2 tax-free bonuses over 4 years. You’ll get any bonuses you’ve earned even if you withdraw money.

After your first 2 years, you’ll get a first bonus if you’ve been using your account to save. This bonus will be 50% of the highest balance you’ve saved.

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After 4 years, you’ll get a final bonus if you continue to save. This bonus will be 50% of the difference between 2 amounts:

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• the highest balance saved in the first 2 years (years 1 and 2)

• the highest balance saved in the last 2 years (years 3 and 4)

 

If your highest balance does not increase, you will not earn a final bonus.

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The most you can pay into your account each calendar month is £50, which is £2,400 over 4 years. The most you can earn from your savings in 4 years is £1,200 in bonus money.

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Your bonus is paid into your bank account, not your Help to Save account.

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ExampleYou pay in £25 every calendar month for 2 years. You do not withdraw any money. Your highest balance will be £600. Your first bonus is £300, which is 50% of £600.

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In years 3 and 4 you save an extra £200 to grow your highest balance from £600 to £800. Your final bonus is £100, which is 50% of £200. Even though you withdrew some money after your balance was £800, this does not affect your bonus.

What happens if you withdraw money.

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If you withdraw money it will be harder for you to:

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• grow your highest balance

• earn the largest possible bonuses

 

Withdrawing money could mean you are not able to earn a final bonus - depending on how much you withdraw and when.

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For full details visit: https://www.gov.uk/get-help-savings-low-income