What happens at the end of 4 years?

After 4 years, the Help to Save account closes automatically. You receive any final bonus owed and your remaining savings are transferred to you. You cannot extend or re-open the account. If you are still eligible (still on UC or Working Tax Credit), you cannot open a second Help to Save account — each person can only have one Help to Save account in their lifetime. After the account closes, you should look at other savings options such as Cash ISAs or premium bonds.

Help to Save Account UK 2025

Q: Who is eligible for a Help to Save account?

You can open a Help to Save account if you are receiving Working Tax Credit, or if you are entitled to Working Tax Credit and receiving Child Tax Credit. You can also open one if you are claiming Universal Credit and your household earned at least £722.45 from paid work in your last monthly assessment period. You must also be a UK resident.

Q: How much is the Help to Save bonus?

The government pays a 50% bonus on your savings. The bonus is calculated on your highest balance, not just your current balance. At the end of year 2, you receive 50% of the highest balance you have reached in the first 2 years (maximum £600 bonus). At the end of year 4, you receive 50% of any increase in your highest balance between year 2 and year 4 (maximum further £600 bonus). Total maximum bonus: £1,200.

Q: Can I withdraw money from a Help to Save account?

Yes, you can withdraw money at any time. However, withdrawals can reduce the bonus you receive, because the bonus is based on your highest balance, not your current balance. For example, if you saved £1,200 (highest balance), then withdrew £600, your highest balance remains £1,200 for bonus purposes — but future contributions only rebuild your balance. You should plan withdrawals carefully to protect your bonus entitlement.

Q: How do I open a Help to Save account?

You open a Help to Save account through the Government Gateway on GOV.UK, or through the HMRC app. You will need a Government Gateway user ID and password. If you do not have one, you can create one when you apply. The account is operated by National Savings and Investments (NS&I) on behalf of HMRC. Once opened, you save via bank transfer directly to your Help to Save account.

Q: Does the Help to Save bonus affect my benefits?

The bonus itself does not count as income for tax credit or Universal Credit purposes. However, the savings held in the account may count as capital for means-tested benefits. Under Universal Credit, savings above £6,000 reduce your entitlement, and savings above £16,000 disqualify you from Universal Credit entirely. The balance in your Help to Save account is counted as capital. It is important to monitor your total savings against the Universal Credit capital limits.

Q: Is Help to Save better than a Cash ISA?

For eligible claimants, the Help to Save account is almost always better than a Cash ISA due to its exceptional 50% bonus rate. No Cash ISA — or any savings product — currently offers a 50% return. The main advantage of a Cash ISA is flexibility and no means-tested benefit implications. If you are on Universal Credit, any savings above £6,000 in any account (including Help to Save) reduce your UC payments. However, the 50% bonus typically outweighs this for most savers within that range.

Last updated: February 2026 | Author: Mustafa Bilgic (MB)

Key fact: Help to Save offers a 50% government bonus — one of the best returns available on any savings product in the UK. Save £50/month for 4 years and you could receive £1,200 in free government bonuses on top of your £2,400 savings.

Help to Save Bonus Calculator

Enter how much you plan to save each month to see your projected bonuses at year 2 and year 4.

Monthly Savings Amount (£1 to £50 maximum)

You can save between £1 and £50 per calendar month. You can save less in some months or skip months — there is no minimum monthly requirement once the account is open.

Existing Balance (if account already open, enter current highest balance)

If you have already been saving, enter the highest balance you have reached so far. This affects the year 2 bonus calculation.

How many months have you already been saving? (0 for new account)

The account runs for exactly 4 years (48 months) from opening. Enter months already completed.

What is the Help to Save Account?

Help to Save is a type of savings account backed by the UK government, designed to encourage people on low incomes to build a savings habit. It was introduced in September 2018 and is available through the Government Gateway and HMRC app. The account is operated by National Savings and Investments (NS&I) on behalf of HMRC.

The defining feature of Help to Save is its exceptional 50% government bonus. For every pound you save, the government adds 50 pence in bonuses — making it one of the highest-return savings products available anywhere in the UK, far exceeding the interest rates available on standard savings accounts or cash ISAs.

The account lasts for exactly 4 years. You can save between £1 and £50 each calendar month, giving a maximum possible saving of £2,400 over the full term. The maximum government bonus you can receive is £1,200 (50% of £2,400), paid in two tranches: up to £600 at the end of year 2, and up to a further £600 at the end of year 4.

Who is Eligible for Help to Save?

Universal Credit Claimants

Claiming Universal Credit
Household earned at least £722.45 from paid work in the last monthly assessment period
Must be a UK resident
Not currently bankrupt or subject to a debt relief order

Working Tax Credit Claimants

Receiving Working Tax Credit
OR entitled to Working Tax Credit and receiving Child Tax Credit
Must be a UK resident
Not currently bankrupt or subject to a debt relief order

If you stop being eligible (for example, if your Universal Credit claim ends), you can keep your Help to Save account open and continue saving into it until it closes after 4 years. The bonus is still paid based on your savings behaviour, even if you are no longer eligible when the bonus is calculated.

Universal Credit earnings threshold: The £722.45/month figure is based on the Minimum Income Floor equivalent for one adult working 16 hours at National Living Wage. This threshold is reviewed periodically. Check GOV.UK for the most current figure.

How the 50% Bonus Works

The Help to Save bonus is calculated differently from a straightforward interest rate. The government pays 50% of the highest balance you achieve, rather than 50% of your current balance at the time of the payout. This is a crucial distinction that protects savers who make withdrawals.

Year 2 Bonus

At the end of your second year (months 1–24), HMRC calculates the highest balance your account has reached during those 24 months. You receive 50% of that highest balance as a bonus, up to a maximum of £600 (which requires a highest balance of £1,200 or more).

Year 4 Bonus

At the end of your fourth and final year (months 25–48), HMRC looks at the highest balance you have reached during months 25–48, compares it with the highest balance from year 2, and pays 50% of any increase. If your balance in years 3–4 never exceeds your year 2 highest balance, there is no year 4 bonus. The maximum year 4 bonus is £600.

Monthly Saving	Year 2 Highest Balance	Year 2 Bonus	Year 4 Highest Balance	Year 4 Bonus	Total Bonus
£10/month	£240	£120	£480	£120	£240
£20/month	£480	£240	£960	£240	£480
£30/month	£720	£360	£1,440	£360	£720
£40/month	£960	£480	£1,920	£480	£960
£50/month (maximum)	£1,200	£600	£2,400	£600	£1,200

How to Open a Help to Save Account

Check your eligibility

Confirm you are claiming Universal Credit with sufficient earnings, or that you are receiving Working Tax Credit (or WTC + CTC). You must be a UK resident.

Get your Government Gateway details

You need a Government Gateway user ID and password. If you have used any HMRC online service before, you likely already have one. If not, create one at GOV.UK — it takes about 10 minutes and requires your National Insurance number and a form of ID.

Apply on GOV.UK

Go to GOV.UK and search for “Help to Save”, then click “Open a Help to Save account.” You can also apply through the HMRC app on your smartphone. HMRC checks your eligibility automatically — there is no credit check involved.

Save via bank transfer

Once open, you transfer money to your Help to Save account using your unique account details provided by NS&I. Transfers must be in your own name and from your own bank account. You can set up a standing order for regular saving or transfer manually each month.

Receive your bonuses

At the end of year 2 and year 4, HMRC automatically calculates and pays your bonus directly into your nominated UK bank account — not into the Help to Save account itself. You do not need to apply for the bonus; it is paid automatically.

Can You Withdraw from Help to Save?

Yes, you can withdraw money from your Help to Save account at any time and for any reason. There are no restrictions on withdrawals. However, the critical point is that the bonus is calculated on your highest balance ever reached, not your current balance.

This means if you save £1,200 over 24 months (highest balance = £1,200, year 2 bonus = £600), then immediately withdraw £1,000, your year 2 bonus is still £600 because it was based on the highest balance of £1,200 — not your current £200 balance. The withdrawal did not reduce the year 2 bonus.

However, for the year 4 bonus, the comparison is made against your year 2 highest balance. If you withdrawed money and your balance never recovers above the year 2 high point, you will receive no year 4 bonus at all. To maximise the year 4 bonus, you need your balance to grow beyond your year 2 highest balance during years 3 and 4.

Tax Treatment of Help to Save

The government bonuses from Help to Save are tax-free and do not count as income for Income Tax or National Insurance purposes. You do not need to declare them on a Self Assessment tax return. The interest earned within the account (which is minimal, as NS&I pays very low interest on the account balance itself) may be subject to income tax if it exceeds your Personal Savings Allowance (£1,000 for basic rate taxpayers, £500 for higher rate), but in practice this is negligible given the small amounts involved.

Impact on Benefits

The Help to Save account balance counts as savings/capital for means-tested benefit purposes. This has implications for:

Universal Credit: Savings between £6,000 and £16,000 reduce your UC award (by £4.35/month for every £250 above £6,000). Savings above £16,000 disqualify you from UC entirely.
Working Tax Credit: The account balance itself does not generally affect WTC entitlement, but if your savings generate taxable income above your Personal Savings Allowance, that could marginally affect your income assessment.
Council Tax Support: Local authority schemes vary, but many have a capital limit of £6,000 (some £16,000). Your Help to Save balance counts towards this.
Housing Benefit: The capital limit is £16,000. Your Help to Save balance counts.

For most Help to Save users, total savings within the account are unlikely to reach £6,000, so the impact on UC is typically zero. The maximum you can save over 4 years is £2,400, and even with the £1,200 bonus, your total is £3,600 — comfortably below the UC capital threshold.

Help to Save vs Cash ISA: Which Should You Choose?

For people who meet the eligibility criteria, Help to Save is almost always the superior choice compared to a Cash ISA, because no Cash ISA — or any other savings product — offers a 50% return. Even the best easy-access cash ISAs in 2025 offer around 4–5% interest, compared to an effective 50% annual return from Help to Save when you save regularly.

That said, there are some scenarios where a Cash ISA might be preferable or complementary:

You have already maxed out your Help to Save contributions for the month and want to save more
You want savings that are entirely exempt from the UC capital rules (though Help to Save still counts as capital under UC)
You prefer more flexibility with no restrictions on contribution amounts
You want to invest in stocks and shares for potentially higher long-term returns

There is nothing stopping you from having both a Help to Save account and a Cash ISA. You can contribute to both simultaneously, subject to the ISA annual allowance of £20,000. Help to Save contributions do not count towards your ISA allowance.

What Happens When Help to Save Closes?

After exactly 4 years, your Help to Save account closes automatically. NS&I will transfer your remaining savings balance to your nominated UK bank account. The year 4 bonus is also paid to your nominated account at this point (if applicable). Once closed, you cannot re-open a Help to Save account — each person is limited to one Help to Save account in their lifetime, whether or not they reached the maximum bonus.

Frequently Asked Questions

Who is eligible for a Help to Save account?

You can open a Help to Save account if you are claiming Universal Credit and your household earned at least £722.45 from paid work in your last monthly assessment period. Alternatively, you can open one if you receive Working Tax Credit, or if you are entitled to Working Tax Credit and also receive Child Tax Credit. You must be a UK resident. There is no credit check involved.

How much is the Help to Save bonus?

The government pays a 50% bonus on the highest balance you reach. The bonus is split into two payments: up to £600 at the end of year 2, and up to £600 at the end of year 4. The maximum total bonus is £1,200. To receive the maximum bonus, you must save £50 every month for all 48 months, building a highest balance of £1,200 at year 2 and £2,400 at year 4.

Can I withdraw money from a Help to Save account?

Yes, you can withdraw money at any time with no penalties. However, the bonus is calculated on your highest balance ever reached. If you withdraw money, your highest balance remains unchanged — protecting your bonus — but future contributions only count for the year 4 bonus if they push your balance above the year 2 highest balance. Plan withdrawals carefully if you want to maximise both bonuses.

How do I open a Help to Save account?

Apply through your Government Gateway account on GOV.UK or via the HMRC app. You will need your Government Gateway user ID and password, plus your National Insurance number. HMRC checks your eligibility automatically. The account is provided by NS&I (National Savings and Investments) and once open, you save by transferring money from your own bank account using the unique sort code and account number provided.

Does the Help to Save bonus affect my benefits?

The bonus payments themselves are tax-free and do not count as income for benefits purposes. However, the savings balance in your account counts as capital for means-tested benefits. Under Universal Credit, savings above £6,000 reduce your payments, and savings above £16,000 stop your entitlement entirely. The maximum you can accumulate in Help to Save is £3,600 (£2,400 savings + £1,200 bonus), which is below the £6,000 threshold for most users.

Is Help to Save better than a Cash ISA?

For eligible claimants, Help to Save is almost always the better choice. A 50% government bonus far exceeds the 4–5% interest rates available on cash ISAs. The main reasons to also use a Cash ISA are if you want to save more than £50/month, or if you have maxed out your Help to Save contributions. There is no restriction on holding both accounts simultaneously — Help to Save contributions do not count towards your £20,000 ISA annual allowance.

What happens when the Help to Save account closes after 4 years?

After exactly 4 years, the account closes automatically. NS&I transfers your savings balance and any outstanding year 4 bonus to your nominated UK bank account. Once closed, you cannot open another Help to Save account — each person is limited to one account in their lifetime. You should plan ahead for where you will continue saving after the account closes, such as a Cash ISA or a Lifetime ISA if you are under 40 and saving for a first home.

Related Calculators and Guides

Savings Goal Calculator — Plan how long it will take to reach your savings target
Lifetime ISA Calculator — Compare the LISA 25% bonus with Help to Save
Income Tax Calculator — See your take-home pay and tax liability
Universal Credit Calculator — Estimate your UC entitlement
ISA Calculator — See how your ISA savings grow over time

Mustafa Bilgic (MB)

Financial content writer and calculator specialist at UK Calculator. All tools use official HMRC and government data. Learn more about our team.