The Help to Save savings account is only available to people on Working Tax Credit or Universal Credit – and it could make claimants hundreds of pounds better off
Universal Credit recipients across the nation could potentially pocket a free £300 by investing in a specific bank account.
The Help to Save savings account, exclusively available to those on Working Tax Credit or Universal Credit, offers a 50p bonus for every £1 saved over a four-year span.
This is subject to a monthly cap of £50 with a minimum deposit of £1, but savers aren’t obligated to contribute every month. This monthly limit resets at the start of each month, meaning you could deposit £50 on March 31 and another £50 on April 1.
An additional perk of this savings account is the extra bonuses awarded at the end of the second and fourth years the account has been active. These bonuses are granted even if funds have been withdrawn from the account.
After the initial two years, claimants will receive a 50% bonus based on the highest balance saved. After four years, the final bonus will be 50% of the greater amount between what was saved in the first two years and what was saved in the last two years.
In practical terms, the maximum sum you can save over four years is £2,400. Consequently, a two-year bonus will peak at £1,200.
Money-saving guru Martin Lewis has previously praised this account as the top choice for those who qualify. On his show, the Martin Lewis Money Show, he explained: “Totally unbeatable is Help to Save. If you’re on Universal Credit or Tax Credits and you earn over £793 a month currently but from next April, you can earn just £1 you can get this.
“It’s amazing. You’re putting in up to £50 a month and then you get a 50% bonus. Here’s how it works. So imagine you put in £50 a month for a year. You’ve now got £600 in.
“Unfortunately, you’ve had an emergency, you have to take it out. You can’t put any more in for the rest of two years. What was the highest amount you had in? £600, half of £600, 50% of it, £300.
“You still get the £300 bonus, even though you’ve got nothing in.”
Another great perk of Help To Save is that if you or your partner’s total savings are £6,000 or under, including what’s in your Help to Save account, it won’t impact your Universal Credit payments at all. Plus, any bonuses you earn from the account won’t affect your payments either.
This also applies to Working Tax Credit recipients; there’s no cap on how much you can save in Help to Save without affecting your benefits.
How to apply
In order to sign up for a Help to Save account, you will first need to create an account online via GOV.UK. Before making the account, you will your National Insurance Number or postcode and two of the following documents:
- details of a tax credit claim, if you made one
- details from a Self Assessment tax return in the last 2 years, if you made one
- a valid UK passport
- information held on your credit record, if you have one (such as loans, credit cards or mortgages)
- a UK photocard driving licence issued by the DVLA (or DVA in Northern Ireland)
