Calculate your 50% government bonus — up to £1,200 over 4 years. See your Year 2 and Year 4 bonuses instantly.
*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.
You can open a Help to Save account if you meet one of the following criteria:
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).
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.
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.
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:
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.
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.
| Feature | Help to Save | Easy Access Savings (2026) | Cash ISA |
|---|---|---|---|
| Guaranteed bonus/interest | 50% bonus (govt) | 4–5% AER | 4–5% AER |
| Max annual savings | £600 (£50 x 12) | Unlimited | £20,000 |
| Access | Any time (affects Y4 bonus) | Instant | Instant (easy access) |
| FSCS protection | NS&I (100% govt backed) | £85,000 | £85,000 |
| Eligibility | WTC/UC recipients only | Anyone | Anyone (UK resident 18+) |
| Tax on returns | Bonus is tax-free | Subject to PSA (£500–£1k) | Tax-free |
| Equivalent return on £50/mo | 50% guaranteed | ~4.5% | ~4.5% |
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:
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.
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.
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.
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.
Data verified against official UK government sources. Last checked April 2026.