What Is a Help-To-Save Account?

A Help-To-Save account is a government-backed savings scheme designed to help low-income earners save money. Eligible participants can deposit up to £50 per month for four years and receive a 50 % tax-free bonus on their savings — worth up to £1,200 in total. The scheme is managed by HMRC through National Savings & Investments (NS&I) and aims to support working individuals receiving Universal Credit or Working Tax Credit.

Introduction: Encouraging Savings for Everyone

Saving money is not always easy, especially during times of high living costs. Many households across the United Kingdom struggle to set aside money regularly, even though financial stability depends on building small savings over time.
The UK Government’s Help-To-Save scheme was introduced to support working individuals on lower incomes by offering an attractive, tax-free bonus as an incentive to save consistently. For those who qualify, it can be one of the most rewarding savings options currently available.

What Is a Help-To-Save Account?

A Help-To-Save account is a special type of savings account offered by the UK Government and administered by National Savings and Investments (NS&I). It allows eligible individuals to save between £1 and £50 per month for up to four years.
Unlike traditional savings accounts that pay interest, Help-To-Save rewards savers with a 50 % bonus from the government, calculated on the highest balance achieved within each two-year period. The account remains open for four years and automatically closes at the end of that period.
Participants can withdraw funds at any time, but doing so may reduce the final bonus payment.

Who Can Open a Help-To-Save Account?

You can open a Help-To-Save account if you meet the following criteria:

You live in the United Kingdom.
You receive Universal Credit and earned at least £1 from work in your most recent monthly assessment period.
Or you receive Working Tax Credit, or you are entitled to receive it.
You are a Crown servant or member of the armed forces living abroad (or their spouse or civil partner).

Once opened, your account remains active for the full four-year term, even if your circumstances change and you no longer receive qualifying benefits.
From April 2025, eligibility is expanding so that all working Universal Credit claimants earning at least £1 in their assessment period will qualify.

How Much You Can Save

You can save up to £50 per month, but there is no requirement to save every month. If you miss a month, you do not lose your account or future bonuses — you simply will not earn as much overall.
The £50 limit applies per calendar month and cannot be carried forward. Over four years, the maximum total you can save is £2,400.

How the Bonuses Work

The Help-To-Save scheme pays two tax-free bonuses:

The First Bonus — paid at the end of the first two years, equal to 50 % of the highest balance you achieved during those two years.
The Second Bonus — paid at the end of the fourth year, equal to 50 % of the increase between your highest balance in years three and four and your highest balance in the first two years.

For example, if you save the maximum of £50 per month for four years, you will have deposited £2,400 and can earn up to £1,200 in total bonuses.
Bonuses are paid directly into your bank account, not into your Help-To-Save account.

How to Apply and Manage Your Account

You can apply for a Help-To-Save account online through the official GOV.UK website. You will need a Government Gateway account and your National Insurance number to register.
Once opened, you can manage your account online or through the HMRC app — checking your balance, tracking bonuses, or withdrawing funds.
Payments can be made by:

Debit card
Standing order
Bank transfer

You can withdraw money at any time, but reducing your balance may lower your final bonus. If you close the account early, you will lose eligibility for future bonuses and cannot reopen it later.

Benefits of the Help-To-Save Scheme

The Help-To-Save scheme offers several unique advantages:

Generous Government Bonus: The 50 % tax-free bonus is significantly higher than standard savings rates.
Flexible Savings: You can deposit any amount between £1 and £50 per month and withdraw money if needed.
Safe and Secure: The scheme is backed by HMRC and managed by NS&I, so your money is fully protected.
No Impact on Eligibility: Opening an account does not affect your Universal Credit or Working Tax Credit payments.

This makes Help-To-Save one of the best government-backed options for those looking to start saving consistently.

Points to Consider

Although the scheme is beneficial, there are a few considerations to keep in mind:

Withdrawing money reduces the highest balance used to calculate your bonus.
Once the four-year term ends, the account automatically closes and cannot be renewed.
If your total savings exceed the capital limit for certain benefits, this may affect eligibility for some means-tested support (though this is rare).

Overall, the benefits outweigh the downsides for most eligible savers.

Example Scenarios

Example 1: Regular Saver
Sarah saves £50 every month for two years, building a balance of £1,200. She receives a 50 % bonus of £600 at the end of year two.
Example 2: Irregular Saver
James saves £30 some months and skips others, reaching a maximum balance of £900. His first bonus will be £450.
Example 3: Saver With Withdrawals
Emma saves £1,000 but withdraws £300. Her highest balance remains £1,000, but since she withdrew funds, her second-period bonus may be reduced depending on future deposits.

Recent Updates to Help-To-Save

In April 2025, the government will update eligibility rules to include all working Universal Credit claimants earning at least £1 per month. This change will make the scheme accessible to hundreds of thousands more people.
Additionally, new Help-To-Save accounts can now be opened until April 2027, after which the programme’s future will be reviewed.

FAQs

Can I open more than one Help-To-Save account?
No. You can open only one account, and once it closes, you cannot open another.

What happens if I stop receiving benefits?
You can continue using your Help-To-Save account until it closes.

Can I withdraw money whenever I want?
Yes, but doing so can lower your potential bonus.

Will the bonus affect my tax or benefits?
No. The bonus is tax-free and does not count as income for benefit calculations.

What happens after four years?
The account closes automatically, and you receive your final bonus. You can then transfer your savings into another account of your choice.

Conclusion: A Valuable Opportunity to Build Savings

The Help-To-Save account is one of the most supportive government initiatives for low-income earners in the United Kingdom. It rewards consistency, offers flexibility, and provides a rare 50 % return that far exceeds typical savings rates.
If you are eligible, now is the best time to open an account before the application window closes in 2027. Even small monthly contributions can lead to meaningful financial progress over time.

At Persona Finance, we help individuals and business owners make smarter financial decisions — from tax planning to government-backed savings schemes.
👉 Contact Persona Finance today to see how we can help you plan your finances and make the most of opportunities.