How do bonuses work?

What you'll get

You can earn 2 tax-free bonuses over 4 years. You'll get any bonuses you've earned even if you withdraw money.

After your first 2 years, you'll get a first bonus if you've been using your account to save. This bonus will be 50% of the highest balance you've saved.

After 4 years, you'll get a final bonus if you continue to save. This bonus will be 50% of the savings you pay into your account above the highest balance you saved in the first 2 years. If your highest balance does not increase, you will not earn a final bonus.

The most you can pay into your account each calendar month is £50, which is £2,400 over 4 years. The most you can earn from your savings in 4 years is £1,200 in bonus money.

Your bonus is paid into your bank account, not your Help to Save account.

Example

You pay in £25 every calendar month for 2 years. You do not withdraw any money. Your highest balance will be £600. Your first bonus is £300, which is 50% of £600.

In years 3 and 4 you save an extra £200 to grow your highest balance from £600 to £800. Your final bonus is £100, which is 50% of £200. Even though you withdrew some money after your balance was £800, this doesn't affect your bonus.

What happens if you withdraw money?

If you withdraw money it will be harder for you to:
- grow your highest balance
- earn the largest possible bonuses

Withdrawing money could mean you are not able to earn a final bonus - depending on how much you withdraw and when.

How it will affect your benefits

Saving money through a Help to Save account could affect your eligibility for certain benefits and how much you get.

Universal Credit

If you or your partner have £6,000 or less in personal savings this will not affect how much Universal Credit you get. This includes any savings in your Help to Save account.

Your Help to Save bonuses will not affect your Universal Credit payments.

Working Tax Credit

Any savings or bonuses you earn through Help to Save will not affect how much Working Tax Credit you get.

Housing Benefit

If you or your partner have £6,000 or less in a personal savings this will not affect how much Housing Benefit you get. This includes any savings in your Help to Save account.

Your Help to Save bonuses will not affect your Housing Benefit payments.