We all know saving small amounts add up. And this is even easier with the Government’s Help to Save account – especially with its 50% bonus.
What is a Help to Save account?
The Help to Save account is a special savings account backed by the UK Government, so it is 100% safe.
You can save between £1 and £50 into the account each month and have the account for up to four years.
Unlike a normal savings account, the Help to Save account doesn’t pay interest, but instead it pays a generous 50% Government bonus.
If you keep paying into the savings account, at the two-year and four-year mark, the Government will pay a bonus of 50% of your highest balance throughout that time. So, if you save the maximum £50 per month, it means that after two years, you will have saved £1,200 of your own money and will be eligible for the tax-free Government bonus of £600. If you continue to save the maximum amount for the following two years, you will have saved £2,400 of your own money and earned the maximum Government bonus of £1,200 – that’s a total savings pot of £3,600!
With a Help to Save account, you can access your money at any time via your online account or through the HMRC app. It’s worth keeping in mind, though, that withdrawals could affect your bonus payments.
Who can get a Help to Save account?
You can apply for a Help to Save account if any of the following apply:
• You are claiming Universal Credit and you (or you combined with your partner if it’s a joint claim) earned a minimum of £793.17 from paid work in your last assessment period.
(If you get Universal Credit as a couple, you and your partner can still apply for your own individual Help to Save accounts).
You are in receipt of:
- Working Tax Credit; or
- Child Tax Credit and you’re entitled to Working Tax Credit.
You only need to be eligible on the day you apply for a Help to Save account. If your circumstances change and you stop receiving Tax Credits or Universal Credit, your Help to Save account will stay active and you can continue to save into it and benefit from the Government bonuses.
So, small amounts really can add up!
