{"id":10900,"date":"2025-02-27T22:55:16","date_gmt":"2025-02-27T22:55:16","guid":{"rendered":"https:\/\/finderica.com\/?p=10900"},"modified":"2025-02-27T22:55:16","modified_gmt":"2025-02-27T22:55:16","slug":"help-to-save-1200-tax-free-cash-from-the-government","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=10900","title":{"rendered":"Help to Save: \u00a31200 TAX-FREE Cash From the Government!"},"content":{"rendered":"
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\t\t\t<\/p>\n

\t\tAnnie<\/small><\/p>\n

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\n\t\t<\/i> 27th Feb 2025<\/small>
\n\t<\/span><\/p>\n

\t\t\t\t\t\tReading Time:<\/span> 9<\/span> minutes<\/span><\/span>\t\t\t\t<\/p>\n

Updated 27th February 2025<\/strong><\/em><\/p>\n

Saving when you\u2019re on a low income seems impossible \u2013 but with the Government\u2019s Help to Save account, it\u2019s not only possible but lands you with a whopping 50% bonus.<\/p>\n

Designed for those in receipt of Universal Credit, this little-known savings account is available for many people on a low income. Over the course of 4 years, you could earn a massive \u00a31200 FREE BONUS from the Government.<\/p>\n

Here\u2019s everything you need to know about this well-kept secret!<\/p>\n

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  1. What is Help to Save?<\/a><\/strong><\/li>\n
  2. How it Works<\/a><\/strong><\/li>\n
  3. Who is Eligible for Help to Save?<\/a><\/strong><\/li>\n
  4. When Do I Get My Bonus?<\/a><\/strong><\/li>\n
  5. What Are the Advantages of Help to Save?<\/a><\/strong><\/li>\n
  6. What Are the Disadvantages?<\/a><\/strong><\/li>\n
  7. Will it Affect My Benefits?<\/a><\/strong><\/li>\n
  8. How to Open a Help to Save Account<\/a><\/strong><\/li>\n
  9. More Ways to Save Money on a Low Income<\/a><\/strong><\/li>\n
  10. Extra Ways to Earn More Money<\/a><\/strong><\/li>\n<\/ol>\n

    \u00a0<\/p>\n

    <\/a>What is Help to Save?<\/h2>\n

    \"Saving\"Saving<\/p>\n

    The Government wants to encourage those on low incomes to save money. But, is saving really worth it when interest rates are so low and you need all the cash you\u2019ve got?<\/p>\n

    Help to Save is the answer. It\u2019s an easy-access savings account that comes with an added Government bonus in the second and fourth year you hold the account. The bonus isn\u2019t interest \u2013 so it doesn\u2019t count towards the annual \u00a31000 tax-free allowance for interest earnings.<\/p>\n

    For the self-employed, it\u2019s also worth noting that these bonuses don\u2019t count as generated income \u2013 so no need to add them on your tax return.<\/p>\n

    The key things to know about Help to Save are:<\/p>\n

      \n
    1. You can save up to \u00a350 a month (and there\u2019s no penalty for months you don\u2019t pay in)<\/li>\n
    2. If you\u2019re in a couple, you can each have a Help to Save account<\/li>\n
    3. You\u2019re eligible if you\u2019re on Universal Credit and earn a household income of \u00a3793.17 in one month THIS CHANGES IN APRIL 2025 \u2013 THE MINIMUM EARNING THRESHOLD WILL ONLY BE \u00a31. Yes, that\u2019s right \u2013 \u00a31!<\/strong><\/li>\n
    4. You only need to hit that earning amount once to qualify<\/li>\n
    5. In years two and four you get a bonus worth 50% your total savings of the highest amount saved in that year<\/li>\n
    6. You can withdraw your money at any time<\/li>\n
    7. It\u2019s a Government scheme, so your money is safe (unlike, for example, a savings app that\u2019s not covered by the FSCS rules).<\/li>\n<\/ol>\n

      <\/a>How does Help to Save work?<\/h2>\n

      You can pay between \u00a31 to \u00a350 a month into the account for a maximum of four years. You don\u2019t have to pay in every month, either.<\/p>\n

      Withdrawals are easy and penalty-free at any time you have the account \u2013 but taking money out will reduce the amount of bonus you\u2019ll get.<\/p>\n

      At the end of the second year and fourth year of holding the account, you\u2019ll get paid your bonus.<\/p>\n

      This bonus is a whopping 50% of the highest amount you\u2019ve saved to date in the account. That\u2019s not 50% on the account balance at the time of payment: it\u2019s the highest balance you\u2019ve achieved ever on the account in the bonus period (which is years 1 and 2, then years 3 and 4).<\/p>\n

      That\u2019s an important distinction: it means that, if you REALLY need to dip into your savings, you can still get the bonus on them. You just won\u2019t be able to get the biggest bonus (as you can only pay \u00a350 in each month).<\/p>\n

      For example, let\u2019s say you\u2019ve saved \u00a3400 in your account by the end of the second year. You actually managed to save \u00a3500, but had to withdraw \u00a3100 for an emergency bill payment.<\/p>\n

      Your bonus would be \u00a3250 \u2013 50% of \u00a3500 \u2013 as that\u2019s the highest amount you\u2019ve held in the account so far.<\/p>\n

      Of course, if you pay in \u00a350 a month for the full four years, that means you\u2019ve saved \u00a32,400 of your own money \u2013 leading to a huge \u00a31,200 bonus total from the Government. This is paid in two instalments: at the end of year two, the maximum bonus is \u00a3600 (if you\u2019ve saved your full allowance of \u00a31,200). At the end of year four, when the account closes, you\u2019ll receive a further \u00a3600 if you\u2019ve saved another \u00a31,200.<\/p>\n

      There are no savings accounts AT ALL that offer such a generous and GUARANTEED return! If you can get this account, do it!<\/strong><\/p>\n

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      <\/a>Who is Eligible for Help to Save?<\/h2>\n

      \"Eligibility\"Eligibility<\/p>\n

      You need to show that you\u2019re earning enough money through some paid work before you become eligible for the account. Don\u2019t worry: it\u2019s not a large amount and can be earned by your household so if you and your partner both have some work, both incomes count towards the amount (as Universal Credit is shared for couples, too).<\/p>\n

      You can\u2019t use your Universal Credit payment to qualify for the account. This is where the account encourages people to work and save: if you\u2019re earning through a job, but have a low income, you can still receive some Universal Credit \u2013 and it\u2019s these people that the account is aimed at.<\/p>\n

      If earning the minimum amount to qualify means you won\u2019t get Universal Credit that month, don\u2019t panic! Your Universal Credit doesn\u2019t automatically stop the minute you earn more than your UC entitlement. That\u2019s why monthly assessments exist: it monitors your AVERAGE income over a period of time (making it ideal for the self-employed or those working irregular hours).<\/p>\n

      To qualify, you must:<\/p>\n