HMRC alert as 1.5 million more Brits can open savings account paying 50% bonus | Personal Finance | Finance
HMRC has issued an alert about a savings account that pays up to £1,200 in tax-free bonuses. The tax office added that up to 1.5 million more families will be eligible for the Help to Save account from April 2028, when the criteria will be expanded to include all Universal Credit claimants with caring responsibilities.
The account, designed to support Brits on low incomes, will pay savers a 50% bonus on their savings, which are capped at a maximum of £2,400 over a four-year period. However, finance experts have highlighted that many eligible Brits are missing out on the scheme. Eamonn Prendergast, chartered financial adviser at Bromley-based Palantir Financial Planning Ltd, pointed out: «Help to Save is one of the best-kept secrets in personal finance. A 50% government bonus, worth up to £1,200 over four years, is unbeatable, yet awareness remains low.»
In a recent post on X, HMRC urged: «Help to Save is here to stay – and more families can benefit. The scheme has been made permanent, and from April 2028, up to 1.5 million more families will be eligible thanks to expanded criteria.
«That means more support for those on low incomes, including people on Universal Credit with caring responsibilities.»
Help to Save is currently available for people receiving Universal Credit who have had a take-home pay of £1 or more in their last monthly assessment period. Partners can apply for their own Help to Save accounts separately if they receive payments as a couple.
Customers can deposit between £1 and £50 each month into the account and earn an extra 50p for every £1 they save.
After the first two years, account holders will get a 50% bonus on their highest balance. After four years, savers will get a final 50% bonus, calculated based on the difference between the highest amount in the first and last two years.
For example, if somebody pays the maximum amount of £50 every month to reach £1,200 after two years, they would receive £600 for their first bonus. If they continue to pay in at the same rate, they will receive another £600 at the end of the term.
From September 2018, when the scheme started, to April 2025, some 575,200 customers had opened a Help to Save account, paying a total of £588.2million into their savings pots.
Lucy Rigby, economic secretary to the Treasury, said: «The Government’s Help to Save scheme has boosted the savings of over half a million people across the country to the tune of £220million. We’re committed to helping families build financial resilience and putting more money in the pockets of working people.»
Applicants must live in the UK, but Crown servants or members of the British armed forces can apply if they live overseas, as can their spouse or civil partner. Brits can only open one Help to Save account. Find out how to apply for the account here.
Brits can also get tax-free cash from the Government through the Lifetime ISA, which pays a 25% bonus on savings up to a maximum of £1,000 per year. Account holders can add up to £4,000 each year until they are 50, but the first payment must be made by the age of 40.
