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Help to Save

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  • BarryVonPBarryVonP Forumite
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    Received SEISS grant in late May and along with a small amount of s/e earnings added up to £1200 which reduced my self-employed UC to Zero. I went to Help to Save page to see if I would be eligible. Initially it said I wasn't. Once I got my £0 UC "payment" I went to look again and I was eligible to apply (as my earnings which was mainly SEISS) was over £604.56 in total. So glad I heard about this scheme on here as this will be useful for saving money for future s/e tax bills once work picks up again and I'm off UC (hopefully) in a few months
  • edited 8 July 2020 at 3:15PM
    wwattinawwattina Forumite
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    edited 8 July 2020 at 3:15PM
    Can the seiss grant be used as earnings to apply for help to save account?
  • BarryVonPBarryVonP Forumite
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    Yes I think so as that was the case for me. Most of my "earnings" in May was SEISS
  • DandytfDandytf Forumite
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    Years 3+4 Help to Save -temptations rising with possibility of ending savings next month approx.
    With 50 pounds per month, if I swap over to top of Existing monthly Mortgage overpayment.
    I'de be viewing term reduction of 14 years to 9.5 years.
    Interest rates will rise eventually, which I appreciate will lower overpayments impact.
    Though I'm almost convinced Mortgage increase re payments is sensible.
    Only potential 175 Bonus if I continue with help 2 save.
    Thousands of pounds saved from Mortgage interest by 'reducing term with over payments'
    Any thoughts mser's
    thanks!
    Replenished CRA Reports.2015 Zoe i nav -90-100 miles top charge. Savings continue.Faster Fibre has arrived albeit 1gb to 500mb.
  • PetriixPetriix Forumite
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    Dandytf said:
    Years 3+4 Help to Save -temptations rising with possibility of ending savings next month approx.
    With 50 pounds per month, if I swap over to top of Existing monthly Mortgage overpayment.
    I'de be viewing term reduction of 14 years to 9.5 years.
    Interest rates will rise eventually, which I appreciate will lower overpayments impact.
    Though I'm almost convinced Mortgage increase re payments is sensible.
    Only potential 175 Bonus if I continue with help 2 save.
    Thousands of pounds saved from Mortgage interest by 'reducing term with over payments'
    Any thoughts mser's
    thanks!
    Why is the HTS bonus limited to £175, have you made any withdrawals? If not, the bonus will be 50% of whatever you pay in over the final 2 years. It's obviously not as good as the first 2 years, but still an effective AER of around 15% (assuming you paid in the maximum £50 per month and made no withdrawals).

    There's nothing else remotely like that available and it's vastly more than you will save in interest by overpaying the mortgage. Then, after it matures, you can just overpay the mortgage in one lump (depending on any overpayment limits and the term of your fixed period). Seems like a no-brainer to me; and it's what my partner and I are doing.
  • edited 13 July 2020 at 4:39PM
    DandytfDandytf Forumite
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    edited 13 July 2020 at 4:39PM
    @Petriix
    Thanks yes  help 2 save years 1+2 was mostly used to reduce Aqua Cards.
    I've managed to keep 525 total this month.
    I had posted via mse at that time.
    My 1+2 years were 850 Max (I got kitchen flooring removed and replaced-essential)
    So years 3+4 24*50 (1200)-years 1+2 850
    Total +350- 50% years 3+4 bonus 175.
    I agree I'll never experience such a generous Gov offer as Help 2 Save.
    Though late 40's I seriously want to save for mid or late 50's and maybe retire.
    Reducing Mortgage term is a great incentive.
    Until late 2021 when dmp finishes and another +100 pounds are made available.
    Trying to make choices now for next few years.
    thanks
    Replenished CRA Reports.2015 Zoe i nav -90-100 miles top charge. Savings continue.Faster Fibre has arrived albeit 1gb to 500mb.
  • PetriixPetriix Forumite
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    If you've made withdrawals then it's not anywhere near as good. £175 is probably still marginally better than the interest you might save on the mortgage, and I reiterate that you could overpay in a lump after the HTS matures.

    The trick with HTS is to never withdraw anything as any withdrawal reduces the possible bonus; but if you didn't have that luxury then that's just how it is.

    If you overpay the mortgage now then you can't easily get the money back, compared to the HTS where you could withdraw it if necessary. However, mortgage payments save you interest from day 1 until the end of the term whereas the HTS will only start to accrue interest once you've passed the previous highest balance (which may be never if you make any further withdrawals).
  • DandytfDandytf Forumite
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    @Petriix
    Thanks though I appreciate how H2s works from day 1.
    I'll decide over next few days, could be better to allow until early August, as my part time wage returns to basic, Np extra shifts planned.
    Replenished CRA Reports.2015 Zoe i nav -90-100 miles top charge. Savings continue.Faster Fibre has arrived albeit 1gb to 500mb.
  • ourkidsidmseourkidsidmse Forumite
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    How do I know if this applies to me, im confused about the eligibility?
    • Entitled to working tax credit and receiving working or child tax credit.
    I get child tax credit, but not working tax credit. Surely if someone is entitled to working tax credit they would receive WTC but thie sentance above seems to imply its one or the other? Thanks for any help.

  • spennysafcspennysafc Forumite
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    How do I know if this applies to me, im confused about the eligibility?
    • Entitled to working tax credit and receiving working or child tax credit.
    I get child tax credit, but not working tax credit. Surely if someone is entitled to working tax credit they would receive WTC but thie sentance above seems to imply its one or the other? Thanks for any help.


    If you are working more than 16hours you could be entitled to claim WTC, however if you earn too much your claim would be reduced to nil but would still have a WTC claim, if you then have child tax credits this would allow you to open a Help to Save account.  You need to be working to be elligible of Help to Save.  Its really easy to check, just search for help to save and apply by inserting your National insusrance number (online or on the HMRC app) - it will tell you immediately if you are eligible.  
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