Get help with savings if you鈥檙e on a low income (Help to Save)
What you鈥檒l get
You can earn 2 tax-free bonuses over 4 years. You鈥檒l get any bonuses you鈥檝e earned even if you withdraw money.
After your first 2 years, you鈥檒l get a first bonus if you鈥檝e been using your account to save. This bonus will be 50% of the highest balance you鈥檝e saved.
After 4 years, you鈥檒l get a final bonus if you continue to save. This bonus will be 50% of the difference between 2 amounts:
- the highest balance saved in the first 2 years (years 1 and 2)
- the highest balance saved in the last 2 years (years 3 and 4)
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 拢50, which is 拢2,400 over 4 years. The most you can earn from your savings in 4 years is 拢1,200 in bonus money.
Your bonus is paid into your bank account, not your Help to Save account.
Example You pay in 拢25 every calendar month for 2 years. You do not withdraw any money. Your highest balance will be 拢600. Your first bonus is 拢300, which is 50% of 拢600.
In years 3 and 4 you save an extra 拢200 to grow your highest balance from 拢600 to 拢800. Your final bonus is 拢100, which is 50% of 拢200. Even though you withdrew some money after your balance was 拢800, this does not 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.