Help to Save is a government-backed savings account for people on Universal Credit. You can get a government bonus of up to 50% of what you save, paid in two parts over 4 years. No ordinary savings account comes close to that return.
Who can open one
You're getting Universal Credit and you (with your partner, on a joint claim) had take-home pay of £1 or more in your last monthly assessment period. Your take-home pay is your pay after deductions such as tax and National Insurance.
You live in the UK (or you're a Crown servant or member of the British armed forces overseas, or their spouse or civil partner). Couples who claim together can each open their own account, applying separately.
Paying in
You can pay in between £1 and £50 each calendar month, and don't have to pay in every month. You can pay in by debit card, standing order or bank transfer, as often as you like up to the monthly limit: if you’ve saved £50 by 8 January, you can’t pay in again until 1 February. Over the four years, the most you can pay in is £2,400.
The bonuses
After 2 years you get a first bonus of 50% of the highest balance you've saved. After 4 years you get a final bonus of 50% of how much your highest balance grew in years 3 and 4 over years 1 and 2; if it didn't grow, there's no final bonus. Bonuses are tax-free and paid into your bank account, not the Help to Save account.
GOV.UK’s example. You pay in £25 every month for 2 years without withdrawing, so your highest balance is £600 and your first bonus is £300. In years 3 and 4 you save another £200, so your highest balance grows to £800 and your final bonus is £100. Withdrawing some money after reaching the £800 doesn’t reduce that bonus.
The most you can get. Saving £50 every month for 4 years without withdrawing gives a highest balance of £1,200 after 2 years (a first bonus of £600) and £2,400 after 4 (a final bonus of £600): £1,200 in bonuses on £2,400 saved.
Withdrawals and closing
You can withdraw money, to your bank account only, and you keep any bonus you’ve already earned. Because bonuses depend on your highest balance, withdrawing makes it harder to earn the largest bonuses, and could mean you get no final bonus.
The account closes 4 years after you open it; you keep the money but can't open another, and closing early loses your next bonus. If you stop claiming benefits, you can keep using the account.
How it affects your benefits
If you or your partner have £6,000 or less in savings, including your Help to Save account, it won’t affect how much Universal Credit or Housing Benefit you get. The bonuses don’t affect either payment. For how savings above £6,000 are treated, see Universal Credit and savings.
How to apply
Apply online through GOV.UK. You’ll need your National Insurance number or postcode, your UK bank details, and two of the following to prove who you are:
- a valid UK passport
- a UK photocard driving licence
- 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, such as loans, credit cards or mortgages
Related guides
- Savings accounts guide: the account types, average rates, tax and protection in one place
- Emergency fund: how much to keep and where
- Universal Credit and savings: how savings affect your payment
- Universal Credit guide: who can claim and what you’ll get