Eligible people could get hundreds from HMRC through the unique savings account
The scheme offers a Government bonus of up to 50% for eligible savers(Image: GETTY)
HMRC is urging people to check their eligibility for one unique savings account with a 50% government-backed bonus. Currently, it’s only available to people who work and claim Universal Credit but more people will become eligible from 2028.
HMRC shared on X: “Want to boost your savings? With Help to Save, for every £1 eligible Universal Credit claimants save, the Government adds 50p. That’s up to £1,200 in bonus payments over four years. Check eligibility and apply today via the HMRC app.”
What is Help to Save?
Help to Save is a Govenrment-backed savings account for people with low income offering a bonus of 50% every two years rather than interest rates provided by traditional savings accounts.
Help to Save can only be opened through the Government-backed National Savings and Investments. To be eligible, you’ll need to be claiming Universal Credit but also working and earning at least £1 a month.
You can save a maximum of £50 into the account each month for up to four years. Maxing out this savings cap will build a pot of £2,400 before the HMRC bonus.
How does the bonus work?
Unlike a normal savings account, Help to Save doesn’t pay interest but offers a generous government bonus instead which is paid at the two-year mark and the four-year mark.
The bonus is up to 50% of the highest balance the account had over the two years, even if you withdraw from the account. For example, if the highest balance in your account during the first two years was £500, but you later made a small withdrawal, you should be able to get a £250 bonus payment at the two year mark.
If you’re able to save the maximum £50 a month for the full four years without making any withdrawals, you will get a £600 bonus payment in year two and another £600 bonus payment in year four. Making the total government bonus worth £1,200.
The savings and the bonus payment are not subject to tax. You can also access your savings at any time via your online account or through the HMRC app although withdrawals may take up to three working days according to Money Helper. Taking money out can sometimes affect your government bonus.
After four years, your Help to Save account will be closed and the money, along with the final bonus payment, will be paid into your nominated bank account. However, you won’t be able to reopen your account or open another Help to Save account once yours has closed.
You only need to be eligible for the account on the day you apply for it, not throughout the entire four-year period. For example, if you stop receiving Universal Credit while your account is still active it will remain open until the end of your four-year term.
Leaving the country can affect your Help to Save account depending on how long you are gone for. People serving in the UK armed forces or working abroad as a Crown Servant or their partner can continue using their Help to save account while overseas.