Savings & Investing

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

A complete guide to the Help to Save scheme — who qualifies, how it works, the 50% government bonus, and how to open an account before the scheme closes.

By PocketWise · · 5 min read

Savings and investment information is for educational purposes only. The value of investments can go down as well as up. Cash savings up to £85,000 per person per institution are protected by the FSCS.

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

Sources

  1. GOV.UK — Help to Save