Benefits saving scheme

[Devlesko]

Wow, I've only just seen this is anyone else doing it. It looks like if you put £50 a month away the gov top it up to £100. www.gov.uk/get-help-savings-low-income/eligibility
If you claim as a couple your partner can set an account up too.

No they don’t top it up to £100.

They give you 50% of your highest balance in the first two years and then 50% of the difference between highest balance in first two years and highest balance in second two years.

I know, it's good for those who can save though, a bit of incentive and good bonus.

It’s a brilliant savings scheme. I have it. It’s better than you can get anywhere else tbh.

Whichever way, it's free money from the government and a real incentive to save, especially if you can put by some of the money you'd normally spend anyway, eg Christmas, emergency fund, savings for school uniforms etc to maximise the amount you put in the account.

I found out about it nearly 2 years ago so I'm due for the first "bonus" soon. It's been mentioned on Martin Lewis too.

The calculation is a bit unorthodox but not hard to understand.

Of course it only helps people who actually have money to save, and many on benefits don't.

@UhtredRagnarson

No they don’t top it up to £100.

They give you 50% of your highest balance in the first two years and then 50% of the difference between highest balance in first two years and highest balance in second two years.

This is the bit I don't get. So if you save the maximum every month then you get no bonus for the third and fourth years, as there's no difference between the balance?

Yes you do get a bonus for the 3rd and 4th years as you still save during those months.

So if your balance is 1200 at the end of year 2 you get £600 then you save another £1200 on years 3 and 4 and get another £600 at the end of year 4.

You do get a bonus in the fourth year but only if you haven’t taken the first lot of money out.

Example: you put in £50/month for two years. Balance - £1200, get £600 bonus paid into your bank account. Leave the balance in your Help to Save

Do the same for the next two years and end up with £1200 + the next £1200 + £600 = £3000

But if you took out £1000 when your first two years was up, and continued saving £50/month, you’d only then earn a bonus on whatever you saved over £1200, so you’d have to pay in £1000 and then only earn the bonus on the final £200 - your last bonus would be £100.

It’s to discourage people immediately taking all the money out and blowing it, I assume - to try and get you in the habit of long-term saving.

Thanks for the explanations!

I am doing this. I think in simple terms in order to get the biggest bonus you need to save £50 (maximum) every month!