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Help to Save Calculator UK 2026

Calculate your 50% government bonus — up to £1,200 over 4 years. See your Year 2 and Year 4 bonuses instantly.

Help to Save Bonus Calculator

Year 2 Bonus
—
Paid end of Year 2
Year 4 Bonus
—
Paid end of Year 4
Total Bonus
—
Government bonus earned
Total Account Value
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Savings + all bonuses

How the Help to Save Bonus Works

Year 2 Bonus
50%
of highest balance in Years 1–2. Max £600 if you save £50/month for 24 months.
Year 4 Bonus
50%
of the increase between Years 3–4 highest balance and Years 1–2 highest balance. Max £600.
Key rule: The Year 4 bonus is based on the increase in your highest balance — not the total. If your highest balance in Years 3–4 is the same as or less than in Years 1–2, your Year 4 bonus may be zero. To maximise it, try to save more in Years 3–4 than you did in Years 1–2.

Worked Examples

Save £25/month
Saved (Y1–2):£600
Year 2 Bonus:£300
Saved (Y3–4):£600
Year 4 Bonus:£0*
Total Value:£1,500
Save £50/month (max)
Saved (Y1–2):£1,200
Year 2 Bonus:£600
Saved (Y3–4):£1,200
Year 4 Bonus:£600
Total Value:£3,600
Save £30/month
Saved (Y1–2):£720
Year 2 Bonus:£360
Saved (Y3–4):£720
Year 4 Bonus:£0*
Total Value:£1,800

*Year 4 bonus is zero if highest balance in Y3–4 does not exceed highest balance in Y1–2. Save at least £1 more in Y3–4 to start earning a Year 4 bonus on the difference.

Help to Save Eligibility 2026

You can open a Help to Save account if you meet one of the following criteria:

  • You are receiving Working Tax Credit, or
  • You are entitled to Working Tax Credit and are also receiving Child Tax Credit, or
  • You are on Universal Credit and your household earned income in your last assessment period was at least £658.64 (equivalent to 16 hours at the National Living Wage over 2 months)

You must also be a UK resident (or a Crown servant or member of the British armed forces overseas). You cannot open a Help to Save account if you already have one (one account per person).

Important: If you stop being eligible (e.g. you move off Universal Credit or Working Tax Credit), you can keep your existing Help to Save account open and continue saving until the 4-year term ends.

Complete Guide to Help to Save

Help to Save is a government savings scheme designed to support people on low incomes to build a financial safety net. Launched in 2018, it remains one of the most generous savings incentives available in the UK — a guaranteed 50% return on your savings with no risk. No other legal savings account in the UK offers anything close to this guaranteed return rate.

How to Open a Help to Save Account

You open a Help to Save account through the HMRC online portal on GOV.UK. You will need a Government Gateway user ID and password. If you do not have one, you can create one during the application process.

The account is provided and managed by NS&I (National Savings & Investments) on behalf of HMRC. The application takes approximately 10 minutes online.

Once open, you can pay in by standing order, bank transfer, or debit card. Minimum payment is £1 per calendar month. There is no requirement to pay in every month — you can skip months if needed, but any month you do not pay in means one fewer month's savings working towards your bonus.

Saving Strategy to Maximise Your Bonus

The key strategic insight with Help to Save is that the Year 2 bonus is based on your highest balance ever reached in Years 1–2, not your balance on the last day. This means:

  • Save the maximum £50/month throughout Years 1–2 to reach the highest possible balance of £1,200 — earning a £600 Year 2 bonus
  • If you need to withdraw in Years 1–2, your bonus is still based on the highest balance you previously achieved — but your remaining savings will be lower
  • In Years 3–4, try to save above your Year 1–2 highest balance to earn a Year 4 bonus on the difference
  • Avoid unnecessary withdrawals in Years 3–4 as they reduce the highest balance for your Year 4 bonus calculation

Effect of Withdrawals on Your Bonus

Withdrawals from Help to Save are allowed at any time, but they permanently reduce your account balance. Critically, the bonus is based on the highest balance ever reached — so if you reach £1,200 and then withdraw £500, your Year 2 bonus is still based on £1,200 (you get £600 bonus), but your actual account balance will only be £700 plus the bonus. For the Year 4 bonus, any withdrawals in Years 3–4 reduce the highest balance in that period, directly reducing your Year 4 bonus.

Help to Save and Universal Credit

One of the most significant features of Help to Save is that savings held in the account do not count towards the Universal Credit capital limit. Normally, savings over £6,000 reduce your Universal Credit entitlement, and savings over £16,000 disqualify you entirely. Help to Save balances are specifically exempt from this rule, making it the ideal savings vehicle for Universal Credit recipients who want to build emergency savings without affecting their benefits.

However, the bonuses paid at the end of Years 2 and 4 are treated as income in the period they are paid and may temporarily affect your Universal Credit calculation in that assessment period. The impact is usually small and short-lived.

Comparison with Standard Savings Accounts

FeatureHelp to SaveEasy Access Savings (2026)Cash ISA
Guaranteed bonus/interest50% bonus (govt)4–5% AER4–5% AER
Max annual savings£600 (£50 x 12)Unlimited£20,000
AccessAny time (affects Y4 bonus)InstantInstant (easy access)
FSCS protectionNS&I (100% govt backed)£85,000£85,000
EligibilityWTC/UC recipients onlyAnyoneAnyone (UK resident 18+)
Tax on returnsBonus is tax-freeSubject to PSA (£500–£1k)Tax-free
Equivalent return on £50/mo50% guaranteed~4.5%~4.5%

What to Do After Help to Save Ends

When your Help to Save account closes after 4 years, you will receive your final balance plus the Year 4 bonus. At this point you should move your money to a suitable account. Options include:

  • Cash ISA: Tax-free savings, up to £20,000/year. Ideal for continued short-term saving
  • Lifetime ISA (LISA): If you are aged 18–39 and saving for a first home or retirement, the LISA provides a 25% bonus on up to £4,000/year
  • Premium Bonds: No guaranteed return but tax-free prizes, fully liquid and 100% government backed
  • Easy Access Savings Account: Competitive rates available; keep checking for best deals
Top tip: Many people use Help to Save to build a £3,600 pot (saving the maximum and receiving both bonuses), then transfer the full amount into a Cash ISA or Lifetime ISA as a lump sum deposit to benefit from compound interest going forward.

Help to Save and Tax

The government bonuses paid under Help to Save are completely tax-free. They are not subject to income tax or national insurance regardless of how much you earn. The bonuses do not count towards your Personal Savings Allowance. The interest earned on the savings held at NS&I is minimal (the account does not pay a high savings rate — the value is entirely in the bonus), so tax on interest is rarely a concern.

How the Help to Save Calculator Works

This calculator helps you understand your financial position using current UK rates and regulations for the 2025/26 tax year. Whether you are planning savings, evaluating loan options, or projecting investment growth, accurate calculations are essential for making informed decisions about your money.

UK financial products are regulated by the Financial Conduct Authority (FCA). Interest rates, fees, and terms vary significantly between providers, so comparing actual costs rather than headline rates is important. This tool gives you a clear picture to inform your comparisons.

Key Information for 2025/26

The Bank of England base rate is 4.5% as of early 2026. The Personal Savings Allowance lets basic rate taxpayers earn up to £1,000 in savings interest tax-free (£500 for higher rate taxpayers). The annual ISA allowance remains at £20,000, and the Lifetime ISA allowance is £4,000 with a 25% government bonus for first-time buyers or retirement savings.

Example Calculation

Saving £200 per month into an account earning 4.5% AER would grow to approximately £2,454 after one year, including £54 in interest. Over 5 years at the same rate, your £12,000 in contributions would grow to roughly £13,362, earning £1,362 in compound interest.

Source: Based on current UK financial rates. Last updated March 2026.

Frequently Asked Questions

Who is eligible for Help to Save?
You are eligible for Help to Save if you are receiving Working Tax Credit, or if you are entitled to Working Tax Credit and receiving Child Tax Credit. You are also eligible if you are on Universal Credit and your household take-home pay is over £658.64 per 2-month assessment period (roughly equivalent to 16 hours per week at National Living Wage).
How much is the Help to Save bonus?
The Help to Save bonus is 50% of your highest balance during Years 1–2, paid at the end of Year 2 (maximum £600). A second bonus of 50% of the increase in your highest balance between Years 3–4 and Years 1–2 is paid at the end of Year 4 (maximum £600). Total maximum bonus is £1,200 over 4 years if you save £50/month throughout.
Can I withdraw money from Help to Save?
Yes, you can withdraw from your Help to Save account at any time. However, withdrawals permanently reduce the highest balance achieved, which affects your bonus. In Years 1–2, once you have reached your target highest balance, a withdrawal will not reduce your Year 2 bonus but will leave you with less savings. In Years 3–4, withdrawals directly reduce the highest balance used to calculate your Year 4 bonus.
What happens after Help to Save ends?
Help to Save accounts run for exactly 4 years and cannot be extended. After the account closes, you should move your savings to a suitable account such as a Cash ISA, Lifetime ISA (if eligible and aged 18–39), Premium Bonds, or an easy access savings account. The government recommends opening an account before your Help to Save closes so the transition is seamless.
Does Help to Save affect Universal Credit?
Help to Save savings and bonuses are exempt from Universal Credit capital means testing. Your savings balance in a Help to Save account does not count towards the £16,000 capital limit. However, the bonuses paid at the end of Years 2 and 4 count as income in the assessment period they are received, which may temporarily reduce your UC payment that month.
How do I open a Help to Save account?
You open a Help to Save account through the Government Gateway on GOV.UK. You need your Government Gateway user ID and password. The account is provided by NS&I (National Savings & Investments) on behalf of HMRC. The application is entirely online and takes around 10 minutes. Search "Help to Save" on GOV.UK to start.
How much should I save in Help to Save each month?
To maximise your bonus, save as close to £50/month as possible throughout the full 4 years. Even saving £25/month (£600 over 2 years) earns a guaranteed £300 Year 2 bonus — a 50% return with no risk. If you save the full £50/month for all 48 months, you earn the maximum £1,200 in bonuses on top of your £2,400 in savings, giving a total of £3,600.
MB
Mustafa Bilgic
UK financial content specialist covering benefits, savings and government schemes for low-income households. Content updated February 2026 to reflect 2025/26 Universal Credit eligibility threshold and Help to Save rules.

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Official Sources & References

Data verified against official UK government sources. Last checked April 2026.