Last Updated on August 8, 2022 by Alis Lee
The Help To Save is a government-supported savings assistance account that can help low-income people save 1 pound each and increase savings by 50 points.
If you are entitled to a job tax credit or general credit, you may be eligible to open a Help To Save account. Since this is a government plan, all your money is safe.
How does Help To Save works?
After opening a Help To Save savings account, you can decide how many times to save. To get a tax-free bonus, you don’t need to save any amount or monthly savings. However, you can save up to £50 per month.
The account remained open for four years and then closed. You can withdraw funds from your savings at any time and the money will be added to your bank account.
However, because only one Help To Save account is allowed to be saved, you can also close the account early, and you will not be able to open another account in the future. If you close your account early, you will not be eligible for the next expired bonus.
How is the Help To Save bonus paid?
You can get two rewards from tax-free savings, and these rewards will be added to your bank account (not your Help2Save account). The reward depends on the amount you save. Even if you withdraw money from your savings, you will still be entitled to receive rewards. However, doing so will affect your chance of getting the most rewards.
The first bonus will be paid at the end of the second year and the amount will be 50% of the highest balance provided. So if you save up to £50 per month at the end of two years, you will save £1200. Your reward will be 50%-600 GBP.
The second bonus is paid at the end of the fourth year, and it has a 50% discount on the deposit you paid in your account with the highest balance you have saved. Therefore, if you continue to save £50 per month, you will add another £1,200 to the savings bowl and receive a bonus of £600.
However, if you withdraw all the money accumulated after two years and continue to save, you will not receive a reward in the fourth year because your maximum balance will not exceed 1200 pounds.
Who can open a HelpToSave account?
If you live in the UK and meet the following conditions, you can open an account to save the instructions:
- You have the right to receive or receive a child tax credit or a child tax credit, or
- During the previous evaluation period, your requirements for comprehensive credit and your family’s income were £542.88 or more. Your global credit payment does not count towards your family’s income.
- If you and your partner have tax-free or global credit family assistance, they can open an instruction account to keep both accounts.
- However, if you stop claiming benefits, you can still use your savings account.
If you live abroad and you are:
- Civil servant, wife or civil partner
- Members of the British Armed Forces, your husband or your civilian partner
Will my Help To Save affect my benefits?
The money saved through “help 2 save” may affect your eligibility for certain benefits and the amount you receive.
Also, You or your partner can save up to £6,000 without affecting the global credit limit. This includes all funds in your savings account. Any savings assistance voucher you receive will not affect your overall credit payment.
Business tax credit
Helping to save without any savings or rewards will affect the business tax credit you get.
Last but not least, you or your partner can save up to £6,000 without affecting the payment of family benefits. This includes all funds in your savings account. Any savings grant awards you receive will not affect your family welfare payments.
How do I register To Help to Save?
If you are eligible, you can open a help account to save online or through the HMRC application.
You will need:
- Your national insurance number
- Also, your bank account details: this is where the withdrawal or reward is paid
- Government portal account: If you do not have an account, you can set up an account as required
- If you cannot call, you can call +443003227093 to open an account.
Help To Save App
For Android Users: Help To Save App
For IOS Users: Help To Save App
Lastly, we hope the information is helpful for you to complete the Help To Save. If you have any queries regarding Help2Save or you want to know about any other customer surveys or any login guide. Do write in the comment section below or write to us at [email protected].