You’ll hear about Help to Save accounts a lot if you spend time online or watch Martin Lewis. But what is it and what can it do for you?
Help to Save is a government-backed savings program designed to help people on low incomes.
Qualifying savers can receive a 50% savings bonus for everything you save over a period of 4 years.
So every £1 you can save in that time, the government will add another 50p over those 4 years.
That’s a great theory. It encourages everyone to save and provides a serious incentive to do so.
If you have the spare cash around to save of course.
Qualifying for Help to Save
Qualifying for Help to Save is refreshingly straightforward for once.
If you qualify or are in receipt of any of the following you will likely qualify for a Help to Save account:
- Universal Credit
- Working Tax Credit
- Child Tax Credit
There is small print of course, like being a UK resident and not earning over a set amount alongside your credits, but that’s about it.
Opening a Help to Save account
Opening a Help to Save account is also refreshingly easy. Log into the government gateway and hit the green Apply now button.
You’ll need to tell them who you are and supply some personal details if you don’t already have a government gateway account.
You’ll then be assessed and notified of whether you have been successful or not.
The system will set up your account and the 48 month clock will start ticking.
You’ll need a bank account to pay the money into your account and can deposit up to £50 per month for four years.
This will be a nominated account where your bonus and final balance will be transferred.
Your government bonus will be paid on the 2nd and 4th anniversary of the account so you won’t see it immediately.
You’ll receive your 50% bonus based on the highest amount in your account over each 2 year period it applies to.
So, even if you withdraw some money to cover an emergency, you’ll still be paid your bonus on the maximum you had in the account.
The only slightly odd thing is that your bonus is paid into your bank account and not added to your Help to Save account.
What happens after 4 years?
Once your four years is up, your Help to Save account will be closed down by the government and all money will be transferred into your nominated account.
You don’t have to do anything and HMRC, who run the account, will automatically transfer your money, pay your bonus and handle everything for you.
You will be notified in plenty of time of course!
Help to Save account
The Help to Save account is a great idea and useful for anyone with the means to save each month.
There are no criteria except the benefits I listed above, it isn’t based on credit score and the government handles all the administrative stuff for you.
If you think you could save anything between £1 and £50 per month and would qualify, it’s a great idea to get one!
