Understanding Help to Save
Help to Save is a government-backed savings scheme designed for people on lower incomes. It offers an exceptionally generous 50% bonus on your savings, making it one of the best returns available on any savings product in the UK. If you save the maximum £50 per month for the full 4 years, you will deposit £2,400 and receive up to £1,200 in bonuses, a 50% return before interest.
How the Bonus Works
The bonus is paid in two instalments. After 2 years, you receive 50% of the highest balance you have achieved. After 4 years, you receive 50% of the difference between your highest balance in years 3-4 and your highest balance in years 1-2. This means even if you withdraw money, your bonus is based on the highest point your savings reached.
Tips to Maximise Your Bonus
To get the maximum £1,200 bonus, save £50 every month for the full 4 years and do not make any withdrawals. If you cannot afford £50 every month, save what you can. Even £1 per month will earn you a bonus. The account is held with NS&I (National Savings and Investments), so your money is 100% backed by the government.