Get a generous bonus with the Government saving scheme if you’re on a low income
Did you know that there’s a really under-rated savings account that offers a really generous 50% Government bonus on your savings?
It’s designed to help people save small and regular amounts when they’re on a low income and it’s definitely worth considering if you meet the criteria.
Here’s how the Help to Save scheme works.
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What is Help to Save?
Help to Save is a savings account that’s only available to people on Universal Credit and other benefits.
You can pay in between £1 and £50 a month, for up to four years, and instead of earning interest, you’ll get a 50% boost from the Government.
Your money is held with National Savings & Investments, and backed by the Government, so your cash is 100% safe.
Despite the generous 50% boost to your savings, the scheme’s not had a particularly good take-up with just 517,000 accounts being opened since they launched in 2018.
Who can get a Help to Save account?
To qualify for the account, you’ll need to be a UK resident, receiving Universal Credit and had take-home pay of £1 or more in your last monthly assessment period. This is your pay after deductions, like tax and National Insurance.
The earning requirements recently changed – they used to be much higher – which means more people will be able to open these accounts in the 2025/26 tax year.
If you’re living abroad, you can still apply if you’re a Crown servant or a member of the British armed forces, or their spouse or civil partner.
If you get payments as a couple, you and your partner can apply for your own Help to Save accounts.
How does the 50% bonus work?
The bonus is paid in two instalments over the four years, one every two years.
After the first two years of saving, your first bonus will be 50% of the highest balance you’ve had in the account, rather than the final balance.
Say you paid in £25 each month and you don’t make any withdrawals. After two years, you’ve saved £600 so the 50% bonus is £300.
If you did the same but withdrew £200 just before the end of year two, though the balance after two years will be £400, you’d still get a £300 bonus as it’s based on that high of £600.
And after four years, you’ll get the second bonus, that’s calculated slightly differently. Rather than a 50% bonus on the total balance, it’s only paid on the amount you’ve saved in years three and four.
This second bonus is calculated as 50% of the difference between two amounts – the highest balance saved in the first two years (years one and two) and the highest balance in the second two years (years three and four).
Going back to our £25 a month example, and a maximum of £600 saved in years one and two.
If you were to add another £300 over the next two years, the difference between the two highest balances is £300,
So you’ll earn 50% of this, or £150, at the end of the fourth year.
As you can see the bonus is really decent – and can’t be beaten anywhere else by a long way!
And if you pay in the maximum £50 a month for the entire four years, you could earn as much as £1,200 by the end of the term.
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How do I open a Help to Save account?
You can set an account via the Government website. If you’ve not already got a Government Gateway ID and password, you can do that when you sign in for the first time.
You’ll need your National Insurance number or postcode and two of the following:
- a valid UK passport
- a UK photocard driving licence issued by the DVLA (or DVA in Northern Ireland)
- details of a tax credit claim (if you’ve made one)
- details from a Self Assessment tax return in the last two years (if you’ve made one)
- information held on your credit record, if you have one (such as loans, credit cards or mortgages)
If you don’t have online access, you call HMRC on its helpline – the number is 0300 322 7093. The line’s open Monday to Friday, 10am to 6pm.
If you’re not sure if you qualify, you could try and apply anyway – your eligibility is checked as part of the application process.
How do I pay into my Help to Save account?
Once you’ve set everything up, you’ll need to login to your Help to Save account to make payments.
You can make one-off transactions or set up a standing order. However, if you set up a weekly amount, you might end up with a different amount being paid into the account in certain months.
My circumstances have changed after applying for the account
That’s ok – you only need to meet the criteria when you apply. If something changes afterwards, you can still save into the account and get the Government bonus.
If you leave the UK temporarily, you’ll be able to contribute to your Help to Save account for a certain period of time but it’ll depend on your specific circumstances.
If you want to check, do give HMRC a call on the helpline.
Is there a deadline to apply?
Yes. The Help to Save scheme was due to close to new applicants in September 2023 but it’s been twice extended.
The latest deadline is April 2027, so you’ll need to apply by then. You’ll then be able to keep the account for four years.
Can I withdraw money?
Yes, you can. You can make withdrawals at any time and the money’s sent to your nominated bank account, although it can take up to three working days.
While it’s good to try and build your savings as best you can, remember your first bonus is paid on the highest balance over two years. So if you need to take some money out of the account, don’t worry, your bonus will be secured at the highest level you’ve reached.
If you do make a withdrawal, you’ll not be able to replace what you’ve taken out. For example, if you paid in £50 that month and took out £40, you’ll not be able to pay in anything more until the next month.
What happens after four years?
Your Help to Save account will close and your savings, plus the final bonus, will be moved to your nominated account.
It’s worth noting that you can only have the Help to Save account once. So after your account is closed, you’ll not be able to open another one.
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.
What if I close the account?
You can close your account at any time, but if you get the timing wrong you could miss out on your next bonus payment. And as above, once your account is closed, that’s it.
If you find you’re unable to make payments into the account, or you don’t want to, it’s a good idea to keep the account open. That way, you’ll still get the bonus and the account’s there if you decide to pay into it again.
Will a Help to Save account affect my benefits?
The savings you build up in your Help to Save account won’t specifically impact your benefits. But if combined they take you above the £6,000 threshold, it could affect how much you get in Universal Credit and your council tax reduction.
If you live with your partner, their savings could affect your benefits. So if you both have a Help to Save account and save the maximum amount each month, your combined savings could reduce how much you could claim.
Should I get a Help to Save account?
If you qualify for a Help to Save account, it’s definitely worth considering as that 50% bonus can’t be beaten anywhere else. While the bonus in the second half of the term isn’t as good, it’s still way more than you’ll get with any other savings account.
Right now, you’re looking at between 4.75% and 5% with easy-access and 7% with regular savers – which are far, far lower rates than with Help to Save. You can see all the top rates in our savings best buy tables.
If you’ve got debts, you can still open an Help to Save account, but if they’re expensive debts, like high-interest loans, or high-priority ones, like council tax arrears, it’s a good idea to look at getting a payment plan in place first.
One of the things we like about Help to Save is that the bonus is based on your highest balance during the qualifying time – rather than how much you have in your account when the bonus is calculated. It means you can save and withdraw the money if you’re hit with an unexpected expense, which you might have otherwise borrowed to pay for, and still get the bonus.
