Help to Save: A Great Savings Account for Low-Income Households

Let’s be honest, saving money often comes way down the list of priorities. With bills, food, and everything else going up in price, it’s no wonder many of us have little left at the end of the month.

To help, the government has introduced several schemes over the years to encourage saving. Remember the Help to Buy ISA? That one was scrapped. There’s still the Lifetime ISA, but it’s limited to under-40s and locks away your money until you buy your first home or reach 60, withdraw early and you’ll be hit with a penalty.

That’s why the Help to Save scheme is such a welcome option. It’s designed specifically for people on lower incomes and offers something you won’t get from any normal savings account: a 50% bonus on your savings.

What is Help to Save?

Help to Save is a government-backed savings account that rewards you with a bonus worth up to 50p for every £1 you save.

It’s far more generous than any bank or building society account right now and is open for four years once you sign up.

How does Help to Save work?

• You can save up to £50 per month (but you don’t have to save every month if money’s tight).
• After two years, you’ll get your first bonus. This is based on the highest balance you’ve managed to build.
  • Example: If your highest balance was £500, you’ll get a £250 bonus – even if your account balance has since dropped back to £0.
• After four years, you’ll get a second bonus, this time based on how much extra you’ve saved above your previous highest balance.
  • Example: If your balance was £500 at the two-year point and £800 by year four, you’ll get a bonus on the extra £300.

At the end of four years, your account closes automatically. You can’t open another one, so it’s worth making the most of it while you can.

Who is eligible?

You can apply if you’re either:

• Entitled to Working Tax Credit and receiving Working Tax Credit or Child Tax Credit payments, or
• Claiming Universal Credit and your household earned at least £722.45 in your last monthly assessment period (this figure is correct as of 2025 and updated from the old £542.88 threshold).

Even if you stop claiming benefits, you can keep your Help to Save account until it closes.

Is my money safe?

Yes, because the scheme is run by the government, your savings are secure.

Will it affect my benefits?

Saving through Help to Save won’t affect your Universal Credit or tax credits directly. However, if you have other savings, the total amount could impact eligibility for some benefits. It’s always worth checking the official government guidance here.

Is Help to Save worth it?

Absolutely. It’s one of the best ways to boost your savings if you qualify. A guaranteed 50% bonus simply doesn’t exist anywhere else.

Of course, once the four years are up, there’s no extension, so it’s important to plan what you’ll do next to keep the savings habit going.

One potential downside? People could, in theory, deposit £50, withdraw it immediately, and still qualify for a small bonus later. But for those who genuinely want to build a savings buffer, this is a fantastic opportunity.

If you’re eligible, I’d say it’s a no-brainer.

✅ Visit the official government website to find out how to open your account.