What is Help to Save?

Help to Save is a government-backed savings scheme that pays a 50% bonus on the highest balance you achieve over 4 years. You can save between £1 and £50 per month. After 2 years, the government pays a bonus of 50% of the highest balance you reached. After 4 years, you get another bonus of 50% on the increase in your highest balance since the 2-year mark. The maximum total bonus is £1,200 on £2,400 of savings.

Who is eligible for Help to Save?

You must be receiving Working Tax Credit, or be entitled to Working Tax Credit and receiving Child Tax Credit, or be claiming Universal Credit and have earned at least £722.45 (or £1,038.91 for couples) in your last monthly assessment period. You must also be living in the UK. You can only have one Help to Save account.

Does the Help to Save bonus count as income for benefits?

No — the Help to Save bonus does not count as income or savings for the purposes of means-tested benefits like Universal Credit. The bonus will not affect your benefit payments. However, the savings you build up in the account will count towards your total savings if they exceed the capital limits for your benefits (£6,000 for Universal Credit).

Can I withdraw money from Help to Save?

Yes — you can withdraw your savings at any time without penalty. However, withdrawals reduce your balance, which could reduce your bonus. The bonus is calculated on the highest balance, so if you deposit £600 and then withdraw £200, your highest balance is still £600 and your bonus is calculated on that. But you'll have less in the account when the bonus is paid.

Help to Save Scheme Explained — Get a 50% Government Bonus | PocketWise

Help to Save is one of the best savings deals available in the UK — a guaranteed 50% return from the government. Here is everything you need to know.

How Help to Save Works

Feature	Detail
Monthly savings	£1–£50 per month
Account length	4 years
Bonus	50% of the highest balance achieved
Bonus payments	Two bonus payments — at 2 years and 4 years
Maximum total savings	£2,400 (£50 × 48 months)
Maximum total bonus	£1,200
Effective return	50% guaranteed over 4 years
Tax on bonus	Tax-free
Impact on benefits	Bonus does not count as income for benefits

The 50% Bonus Explained

The bonus is calculated on the highest balance you achieve, not your balance at the end of the period.

First Bonus (After 2 Years)

Detail	Calculation
Highest balance in months 1–24	e.g. £1,200
First bonus	50% × £1,200 = £600
Bonus paid into	Your bank account (not the Help to Save account)

Second Bonus (After 4 Years)

Detail	Calculation
Highest balance in months 25–48	e.g. £2,400
Minus highest balance from first period	e.g. £2,400 – £1,200 = £1,200
Second bonus	50% × £1,200 = £600
Total bonus	£600 + £600 = £1,200

Example: Maximum Bonus

Month	Monthly deposit	Running balance	Highest balance
1	£50	£50	£50
6	£50	£300	£300
12	£50	£600	£600
18	£50	£900	£900
24	£50	£1,200	£1,200
First bonus paid			£600
30	£50	£1,500	£1,500
36	£50	£1,800	£1,800
42	£50	£2,100	£2,100
48	£50	£2,400	£2,400
Second bonus paid			£600
Total saved	£2,400
Total bonuses	£1,200
Grand total	£3,600

Who Can Open a Help to Save Account?

Requirement	Detail
Receiving Working Tax Credit	OR entitled to WTC and receiving Child Tax Credit
Universal Credit	Must have earned at least £722.45 in an assessment period (single) or £1,038.91 (joint claim)
Living in the UK	Must be a UK resident
Age	16 or over
One account only	Cannot have more than one Help to Save account

Eligibility Check

Benefit situation	Eligible?
Receiving Working Tax Credit	Yes
Entitled to WTC, receiving Child Tax Credit	Yes
On Universal Credit, earning above threshold	Yes
On Universal Credit, not working	No
Not on tax credits or Universal Credit	No
On Universal Credit, earning below threshold	No
Partner claims UC, you don’t work	May be eligible if joint claim meets earnings threshold

How to Open a Help to Save Account

Step	What to do
1	Go to gov.uk/helptosave
2	Sign in with your Government Gateway ID
3	Your eligibility is checked automatically against HMRC and DWP records
4	If eligible, your account opens immediately
5	Set up a standing order or make manual payments each month
6	Save between £1 and £50 per month

You do not need to save every month — you can skip months without penalty. But the more you save, the higher your bonus.

Help to Save vs Other Savings Options

Feature	Help to Save	Easy-access savings (4.5%)	Regular saver (7%)	Cash ISA (4%)
Maximum deposit	£50/month	Unlimited	£200–£500/month	£20,000/year
Return	50% bonus	4.5% interest	~3.8% effective	4% tax-free
On £1,200 over 2 years	£600 bonus	~£55 interest	~£47 interest	~£49 interest
Risk	None — government guaranteed	None	None	None
Eligibility	Must be on qualifying benefits	Anyone	Often needs current account	Anyone (UK resident)
Tax	Bonus is tax-free	Taxable above PSA	Taxable above PSA	Tax-free

Help to Save is unbeatable for eligible savers — no other product offers a guaranteed 50% return.

Tips for Maximising Your Bonus

Tip	Why
Save £50 every month if possible	Maximises your bonus at £1,200
Don’t withdraw unless you must	Withdrawals don’t reduce your highest balance, but they reduce what’s in the account
Set up a standing order on payday	Treat it as a bill — save before you spend
Front-load if possible	If you get a lump sum (e.g. tax refund), deposit £50 as early as possible each month
Keep saving in year 3–4	The second bonus is based on the increase above your year 2 peak
Don’t forget to use the bonus	The bonus is paid into your bank account — save it, use it for bills, or invest it

What Happens to Your Benefits?

Item	Impact on benefits?
Help to Save bonus	No — does not count as income for UC, Tax Credits, or other means-tested benefits
Savings in the account	May count towards the savings/capital limit for benefits
UC savings threshold	Savings over £6,000 reduce UC; savings over £16,000 end UC entitlement
Tax Credits savings threshold	Generally no savings limit for Tax Credits

Strategy: If your total savings (including Help to Save balance) are approaching £6,000 and you’re on Universal Credit, be aware of the impact. The bonus itself does not count as savings when it’s paid, but once you move it to another account, it becomes part of your total capital.

After Help to Save Ends

After 4 years	Options
Account closes automatically	You receive your final balance plus the second bonus
Can you open another?	No — one Help to Save account per person, per lifetime
What to do with the money	Move to the best savings account, contribute to a pension, or use for a specific goal
Keep the saving habit	Set up a standing order to an easy-access savings account for £50/month