MoneySavingExpert Chair, Martin Lewis · Editor, Marcus Herbert

# Help to Save

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## Replies

• Forumite
8 Posts
Newbie
Hogglet said:
I think I know the answer to my question but just want to make sure. Here goes
£50 saved per month = £1200 with £600 bonus for years 1 & 2
£50 saved per month = £1200 but if I was to withdraw £600 from the initial £1200 saved (in addition to the £600 bonus) would I still receive a £600 bonus at the end of years 3 & 4 as the difference between the highest balance would still be £1200.

Thank you

If you withdraw an extra £600 then ...

Balance at end of year 1 and 2 is £1200

You withdraw an extra £600 and pay in another £1200 your balance at the end is £1800.

The growth is £1800 - £1200 = £600 so the bonus at the end of year 4 is £300 (you lose the bonus on the extra £600 withdrawn).
Now I’m even more confused. I read it as the second bonus is calculated from the difference between your highest balance in 1 & 2 and then 3 & 4 so that even if you withdraw another £600 from the initial £1200 after the bonus has been paid once you complete 3 & 4 the difference between the balances would still be £1200 thereby enabling another £600 bonus  🤯
• Forumite
3.6K Posts
Hogglet said:
Hogglet said:
I think I know the answer to my question but just want to make sure. Here goes
£50 saved per month = £1200 with £600 bonus for years 1 & 2
£50 saved per month = £1200 but if I was to withdraw £600 from the initial £1200 saved (in addition to the £600 bonus) would I still receive a £600 bonus at the end of years 3 & 4 as the difference between the highest balance would still be £1200.

Thank you

If you withdraw an extra £600 then ...

Balance at end of year 1 and 2 is £1200

You withdraw an extra £600 and pay in another £1200 your balance at the end is £1800.

The growth is £1800 - £1200 = £600 so the bonus at the end of year 4 is £300 (you lose the bonus on the extra £600 withdrawn).
Now I’m even more confused. I read it as the second bonus is calculated from the difference between your highest balance in 1 & 2 and then 3 & 4 so that even if you withdraw another £600 from the initial £1200 after the bonus has been paid once you complete 3 & 4 the difference between the balances would still be £1200 thereby enabling another £600 bonus  🤯
You end year 2 with £1200.

You withdraw £600. The maximum you can pay back in is £1200 taking the end balance to £1800.

So your balance at the end is £1800 which is £600 more than the year 2 end balance.

Hence bonus is £300.
• Forumite
8 Posts
Newbie
Hogglet said:
Hogglet said:
I think I know the answer to my question but just want to make sure. Here goes
£50 saved per month = £1200 with £600 bonus for years 1 & 2
£50 saved per month = £1200 but if I was to withdraw £600 from the initial £1200 saved (in addition to the £600 bonus) would I still receive a £600 bonus at the end of years 3 & 4 as the difference between the highest balance would still be £1200.

Thank you

If you withdraw an extra £600 then ...

Balance at end of year 1 and 2 is £1200

You withdraw an extra £600 and pay in another £1200 your balance at the end is £1800.

The growth is £1800 - £1200 = £600 so the bonus at the end of year 4 is £300 (you lose the bonus on the extra £600 withdrawn).
Now I’m even more confused. I read it as the second bonus is calculated from the difference between your highest balance in 1 & 2 and then 3 & 4 so that even if you withdraw another £600 from the initial £1200 after the bonus has been paid once you complete 3 & 4 the difference between the balances would still be £1200 thereby enabling another £600 bonus  🤯
You end year 2 with £1200.

You withdraw £600. The maximum you can pay back in is £1200 taking the end balance to £1800.

So your balance at the end is £1800 which is £600 more than the year 2 end balance.

Hence bonus is £300.
Ok, now this is why I am so confused:
• The bonus for the first two years is paid on the highest amount you've had in the account during the two years, not the amount that's there at the end – though these could be the same.

For example, if you'd managed to save £1,000, but needed to withdraw £200 before the end of the two years, despite having a balance of £800 you'd still get a £500 bonus, as that's 50% of your highest balance, which was £1,000.

• The bonus in the second two years is paid on the amount that your highest balance in years three and four exceeds your highest balance in years one and two. This isn't very clear, so here's how it could work in practice...

Let's assume you managed to save £500 in years one and two – you'd get a £250 bonus paid out at the end of the second year. But you needed to use the £500 for car repairs, so withdrew it all.

Then, in years three and four, you found you could start saving again and managed to save £750. In this case, you'd get a £125 bonus (this is worked out as £750 - £500 = £250, the bonus being 50% of the difference between your two highest balances).
That’s from here so I don’t know how to work it out!
• Forumite
3.6K Posts
Hogglet said:
Hogglet said:
Hogglet said:
I think I know the answer to my question but just want to make sure. Here goes
£50 saved per month = £1200 with £600 bonus for years 1 & 2
£50 saved per month = £1200 but if I was to withdraw £600 from the initial £1200 saved (in addition to the £600 bonus) would I still receive a £600 bonus at the end of years 3 & 4 as the difference between the highest balance would still be £1200.

Thank you

If you withdraw an extra £600 then ...

Balance at end of year 1 and 2 is £1200

You withdraw an extra £600 and pay in another £1200 your balance at the end is £1800.

The growth is £1800 - £1200 = £600 so the bonus at the end of year 4 is £300 (you lose the bonus on the extra £600 withdrawn).
Now I’m even more confused. I read it as the second bonus is calculated from the difference between your highest balance in 1 & 2 and then 3 & 4 so that even if you withdraw another £600 from the initial £1200 after the bonus has been paid once you complete 3 & 4 the difference between the balances would still be £1200 thereby enabling another £600 bonus  🤯
You end year 2 with £1200.

You withdraw £600. The maximum you can pay back in is £1200 taking the end balance to £1800.

So your balance at the end is £1800 which is £600 more than the year 2 end balance.

Hence bonus is £300.
Ok, now this is why I am so confused:
• The bonus for the first two years is paid on the highest amount you've had in the account during the two years, not the amount that's there at the end – though these could be the same.

For example, if you'd managed to save £1,000, but needed to withdraw £200 before the end of the two years, despite having a balance of £800 you'd still get a £500 bonus, as that's 50% of your highest balance, which was £1,000.

• The bonus in the second two years is paid on the amount that your highest balance in years three and four exceeds your highest balance in years one and two. This isn't very clear, so here's how it could work in practice...

Let's assume you managed to save £500 in years one and two – you'd get a £250 bonus paid out at the end of the second year. But you needed to use the £500 for car repairs, so withdrew it all.

Then, in years three and four, you found you could start saving again and managed to save £750. In this case, you'd get a £125 bonus (this is worked out as £750 - £500 = £250, the bonus being 50% of the difference between your two highest balances).
That’s from here so I don’t know how to work it out!
Your highest balance at the end of year 2 is £1200.
Your highest balance at the end of year 4 is £1800 (because of the extra £600 withdrawal, which is not the bonus)
Difference is £600 so the bonus is £300.
I don't understand why you don't understand what I am explaining.
• Forumite
8 Posts
Newbie
Hogglet said:
Hogglet said:
Hogglet said:
I think I know the answer to my question but just want to make sure. Here goes
£50 saved per month = £1200 with £600 bonus for years 1 & 2
£50 saved per month = £1200 but if I was to withdraw £600 from the initial £1200 saved (in addition to the £600 bonus) would I still receive a £600 bonus at the end of years 3 & 4 as the difference between the highest balance would still be £1200.

Thank you

If you withdraw an extra £600 then ...

Balance at end of year 1 and 2 is £1200

You withdraw an extra £600 and pay in another £1200 your balance at the end is £1800.

The growth is £1800 - £1200 = £600 so the bonus at the end of year 4 is £300 (you lose the bonus on the extra £600 withdrawn).
Now I’m even more confused. I read it as the second bonus is calculated from the difference between your highest balance in 1 & 2 and then 3 & 4 so that even if you withdraw another £600 from the initial £1200 after the bonus has been paid once you complete 3 & 4 the difference between the balances would still be £1200 thereby enabling another £600 bonus  🤯
You end year 2 with £1200.

You withdraw £600. The maximum you can pay back in is £1200 taking the end balance to £1800.

So your balance at the end is £1800 which is £600 more than the year 2 end balance.

Hence bonus is £300.
Ok, now this is why I am so confused:
• The bonus for the first two years is paid on the highest amount you've had in the account during the two years, not the amount that's there at the end – though these could be the same.

For example, if you'd managed to save £1,000, but needed to withdraw £200 before the end of the two years, despite having a balance of £800 you'd still get a £500 bonus, as that's 50% of your highest balance, which was £1,000.

• The bonus in the second two years is paid on the amount that your highest balance in years three and four exceeds your highest balance in years one and two. This isn't very clear, so here's how it could work in practice...

Let's assume you managed to save £500 in years one and two – you'd get a £250 bonus paid out at the end of the second year. But you needed to use the £500 for car repairs, so withdrew it all.

Then, in years three and four, you found you could start saving again and managed to save £750. In this case, you'd get a £125 bonus (this is worked out as £750 - £500 = £250, the bonus being 50% of the difference between your two highest balances).
That’s from here so I don’t know how to work it out!
Your highest balance at the end of year 2 is £1200.
Your highest balance at the end of year 4 is £1800 (because of the extra £600 withdrawal, which is not the bonus)
Difference is £600 so the bonus is £300.
I don't understand why you don't understand what I am explaining.

I was counting each 2 year period as 2 separate entities! Got it now 🤦‍♀️
• Forumite
1 Post
Newbie
I thought this savings Help to save account was for people on universal credit and low income. I am on universal credit and I was told I wasn't eligible. Can any one explain why I can not save on this account, as the government are always trying to tell us who are on universal credit to try and save.
• Forumite
2.5K Posts
Forumite
I thought this savings Help to save account was for people on universal credit and low income. I am on universal credit and I was told I wasn't eligible. Can any one explain why I can not save on this account, as the government are always trying to tell us who are on universal credit to try and save.
There is earning criteria  as set out below
"claiming Universal Credit and your household earned £604.56 or more from paid work in your last monthly assessment period"
If this is the case for you then one assessment period where you meet the criteria then you could apply for an account.
Make £2023 in 2023 (#36) £858.66/£2023
• Forumite
2 Posts
Newbie
Hi there
I advised a family friend who is currently on maternity leave, and on UC, to look at the Help to Save Scheme but "the computer said No" because her maternity pay is only £563 per month.
I have confirmed with her that her maternity pay is as per current legislation: 90% of average pay.  If she were working instead of on maternity leave, her pay would be in the region of £628 pm (£145pw) and she would be eligible for the scheme.  I'm not entirely sure that this represents a form of discrimination but I do think it is a very unfortunate outcome for my friend, and one that the government ought to, and could easily  address.
This is my first post on MSE - will the experts take this up with the govt?
Thanks.
• Forumite
871 Posts
Forumite
will the experts take this up with the govt?
This is just a forum, there is probably no-one here who is going to 'take this up with the govt', but there is nothing to stop you writing to your mp about it.
Maybe when your friend starts working again she'll earn enough to be entitled to open the help to save account. In the meantime, there are a couple of savings accounts which pay some interest if she can pay £50 a month into them. And she could potentially 'earn' £600 in two years from taking advantage of current account switching offers.
Debt Free: 01/01/2020
• Forumite
2 Posts
Newbie
Thanks for this Jami
Ive noticed MSE often refer to their contacts at HM treasury and how they can quickly check apparent anomalies with them; this is what I was hoping for but of course I can take this up myself.