The government savings scheme, Help to Save, provides an incentive for individuals to save for the future by offering a bonus of 50% on contributions up to a maximum of £2400 over a four-year period. This equates to a bonus of £1200.
To qualify for Help to Save you must be:
- Age 16 or over
- Live in the UK
- Be eligible for Child Tax Credit
- Be eligible for Working Tax Credit
- Be eligible for Universal Credit
- Have a minimum take-home pay in your last month of £722,45 or more
The maximum amount that can be deposited into a Help to Save account is £50 per month. Deposits can be made up to five times per month, provided that the monthly limit is not exceeded.
The amount that can be withdrawn from the Help to Save account can be withdrawn at any time, however, this may have an impact on the total bonus amount.
The help to save bonus is paid out in two instalments :
The first instalment is paid after 2 years of saving.
This is equal to 50% of the maximum amount you have saved on your account.
The second instalment is due after 4 years of saving. This is equal to the difference between the maximum amount you saved on your account in the first 2 years and the maximum amount you’ve saved in the last 2 years.
If your maximum balance has not increased within the past two years, you will not be eligible for the final bonus.
The government’s Help to Save program is an excellent opportunity to save money and qualify for a government bonus. I strongly recommend that you open an eligible Help to Save account now.
Here are some additional things to keep in mind about Help to Save:
- Accounts are open for a maximum of four years.
- You can only have one Help to Save account.
- You cannot transfer money from another savings account into your Help to Save account.
- You cannot use your Help to Save account to pay for everyday expenses.
For more information about Help to Save, please visit the GOV.UK website.