Get help with savings if you鈥檙e on a low income (Help to Save)

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1. How it works

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 拢1 they save over 4 years.

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

This guide is also available in Welsh (Cymraeg).

How payments work

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

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

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

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

How bonuses work

You get bonuses at the end of the second and fourth years. 皇冠体育appy鈥檙e based on how much you鈥檝e saved.

What happens after 4 years

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鈥檒l be able to keep the money from your account.

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

Sign in

Sign in to your Help to Save account if you already have one.

2. What you鈥檒l get

You can earn 2 tax-free bonuses over 4 years. You鈥檒l get any bonuses you鈥檝e earned even if you withdraw money.

After your first 2 years, you鈥檒l get a first bonus if you鈥檝e been using your account to save. This bonus will be 50% of the highest balance you鈥檝e saved.

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

  • 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.

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

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

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

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

What happens if you withdraw money

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

  • 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.

3. Eligibility

You can open a Help to Save account if you鈥檙e receiving Universal Credit and you (with your partner if it鈥檚 a joint claim) had take-home pay of 拢1 or more in your last monthly assessment period.

Your take-home pay is your pay after deductions (such as tax or National Insurance).

If you get payments as a couple, you and your partner can apply for your own Help to Save accounts. You need to apply separately.

You also need to be living in the UK. If you live overseas, you can apply for an account if you鈥檙e either a:

  • Crown servant or their spouse or civil partner
  • member of the British armed forces or their spouse or civil partner

If you stop claiming benefits

You can keep using your Help to Save account.

4. How it will affect your benefits

Saving money though a Help to Save account could affect your eligibility for certain benefits and how much you get.

Universal Credit

If you or your partner have 拢6,000 or less in personal savings this will not affect how much Universal Credit you get. This includes any savings in your Help to Save account.

Your Help to Save bonuses will not affect your Universal Credit payments.

Working Tax Credit

Any savings or bonuses you earn through Help to Save will not affect how much Working Tax Credit you get.

Housing Benefit

If you or your partner have 拢6,000 or less in personal savings this will not affect how much Housing Benefit you get. This includes any savings in your Help to Save account.

Your Help to Save bonuses will not affect your Housing Benefit payments.

5. How to apply

You鈥檒l need to sign in to set up a Help to Save account. If you do not already have sign in details, you鈥檒l be able to create them when you sign in for the first time.

You鈥檒l need your National Insurance number or postcode and 2 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 made one
  • details from a Self Assessment tax return in the last 2 years, if you made one
  • information held on your credit record, if you have one (such as loans, credit cards or mortgages)

You鈥檒l be asked to provide your UK bank details when you apply.

Sign in

Sign in to your Help to Save account if you already have one.