The account lasts four years with bonuses paid after the second and fourth years of the account being opened
A savings account once described by Martin Lewis as “unbeatable” could see you earn an extra £1,200. Help to Save is a savings account for people claiming Universal Credit.
This account allows you to save between £1 and £50 each month – and for every £1 you save, you get 50p back, which is a 50% return on your money.
The account lasts four years with bonuses paid after the second and fourth years of the account being opened. If you’re able to save the maximum of £50 each month, you will have saved £2,400 by the end of the four years and accrued £1,200 in bonuses.
The bonuses are paid by the Government. You can save less and still get a bonus – for example, if you put away £25 a month over two years, your bonus would be £600 back. The account automatically closes after four years.
Martin Lewis previously said of the Help to Save account: “Help to Save is by far the best-paying form of savings. If you’re on Universal Credit, in work and earn £1+, you can get a 50% boost on what you save – even after you withdraw it!”
Help to Save was due to end in April 2025, but in Budget documents, it was confirmed it has been extended by a further two years until April 5, 2027.
Anyone who claims Universal Credit can open a Help to Save account providing they earned at least £1 from work in your last monthly assessment period.
If you’re in a couple, you and your partner can both open separate Help to Save accounts. You can open your Help to Save account through GOV.UK or the HMRC app.
READ MORE: Lloyds and Halifax changing bank accounts – and you could lose out on free cashREAD MORE: Greggs reveals summer menu including new bake and Korean chicken range
But keep in mind, if you have savings elsewhere, having a Help to Save account could potentially see your benefits reduced if you go over a certain threshold. You can only have up to £6,000 in savings if you claim Universal Credit or Housing Benefit.
This would include any savings in your Help to Save account. HMRC recently posted about Help to Save on social media, to encourage people to open an account.
They said: “More people than ever can sign up for Help to Save. For every £1 you save, the government adds 50p. That could mean up to £1,200 in bonus payments over four years. Find out how to apply today through the HMRC app.”