HSTM01200 - Introduction: Overview of the Help-to-Save scheme

The Help-to-Save scheme has been introduced by the government as a way to help working families on low incomes to build up their savings. The scheme works by the government offering a tax free bonus equal to 50% of the highest amount saved in a Help-to-Save account.

A bonus will be paid to individuals who pay up to a maximum of £50 per month into a Help-to-Save account. A bonus will be paid after 24 months of the account being opened, and if the individual continues saving, another bonus is paid at the end of the maturity period, which is usually 48 calendar months from opening.

This means that people will be able to save up to £2,400 and receive bonuses from the government worth up to £1,200.

HMRC will administer the scheme, including checking the identity and eligibility of account applicants and checking and facilitating the funding of bonus payments from Her Majesty’s Treasury. National Savings and Investments (NS&I) will set up accounts for eligible customers, maintain the accounts and handle the bonus calculation and payment.