Help to save

Dippygoose

Altior said:

No because the 2nd bonus is based on the difference between the maximum balance in the 2nd tranche less the 1st tranche. Therefore you can only get to £2400 by not withdrawing anything. 

I think I get it now after two years I get paid £600 into my bank account that’s mine .

I then have to leave the £1200 I saved in years 1&2 in the scheme and do it again to get the 2nd £600 maximum bonus.

Sort of like it’s matures and pays out interest on the highest amount saved after each 2 years .

Altior

The scheme is designed to encourage you to leave all contributions saved over the 4 years. If you took the whole lot out, the maximum balance would be £1200. £1200 - £1200 = 0, so you would get no bonus. If you took £600 out and carried on with saving £50 pcm for the next two years, £1800-£1200 = £600. £600/2 = £300 bonus for the second tranche. 

Dippygoose

Altior said:

The scheme is designed to encourage you to leave all contributions saved over the 4 years. If you took the whole lot out, the maximum balance would be £1200. £1200 - £1200 = 0, so you would get no bonus. If you took £600 out and carried on with saving £50 pcm for the next two years, £1800-£1200 = £600. £600/2 = £300 bonus for the second tranche. 

I see so I have to leave all the saved contributions .

so I save £1200 in first two years get paid £600 Bonus into my bank account on year 2 .
I then save another £1200 in the second two years making it £2400 in the account at the end .
I get paid another £600 bonus the scheme ends and I get my £2400 back.

Is that about right?

Altior

Dippygoose said:

Altior said:

No because the 2nd bonus is based on the difference between the maximum balance in the 2nd tranche less the 1st tranche. Therefore you can only get to £2400 by not withdrawing anything. 

I think I get it now after two years I get paid £600 into my bank account that’s mine .

I then have to leave the £1200 I saved in years 1&2 in the scheme and do it again to get the 2nd £600 maximum bonus.

Sort of like it’s matures and pays out interest on the highest amount saved after each 2 years .

Yes that's right. It's not hugely intuitive to be fair, but very generous. It's quite an ask for most people who would be eligible for the scheme to regularly save for four years I imagine, but at least there is cost free access if needed, and some relief at halfway when the first bonus is distributed. 

I could envisage quite a few people withdrawing the lot after 2 years, saving for another two years and not getting anything for that but the money back. 

Altior

Dippygoose said:

Altior said:

The scheme is designed to encourage you to leave all contributions saved over the 4 years. If you took the whole lot out, the maximum balance would be £1200. £1200 - £1200 = 0, so you would get no bonus. If you took £600 out and carried on with saving £50 pcm for the next two years, £1800-£1200 = £600. £600/2 = £300 bonus for the second tranche. 

I see so I have to leave all the saved contributions .

so I save £1200 in first two years get paid £600 Bonus into my bank account on year 2 .
I then save another £1200 in the second two years making it £2400 in the account at the end .
I get paid another £600 bonus the scheme ends and I get my £2400 back.

Is that about right?

Yes, that's it.

Dippygoose

Altior said:

Dippygoose said:

Altior said:

No because the 2nd bonus is based on the difference between the maximum balance in the 2nd tranche less the 1st tranche. Therefore you can only get to £2400 by not withdrawing anything. 

I think I get it now after two years I get paid £600 into my bank account that’s mine .

I then have to leave the £1200 I saved in years 1&2 in the scheme and do it again to get the 2nd £600 maximum bonus.

Sort of like it’s matures and pays out interest on the highest amount saved after each 2 years .

Yes that's right. It's not hugely intuitive to be fair, but very generous. It's quite an ask for most people who would be eligible for the scheme to regularly save for four years I imagine, but at least there is cost free access if needed, and some relief at halfway when the first bonus is distributed. 

I could envisage quite a few people withdrawing the lot after 2 years, saving for another two years and not getting anything for that but the money back. 

I do appreciate the help I’m sorry it took a few attempts for me to understand it .
it was a little confusing with me being autistic as well.

I can see people withdrawing all of it after two years as well for some people myself included that’s a lot of money.

But I’m going to leave it there for the full four years.

Altior

I'm a finance professional and it wasn't immediately intuitive to be fair! It smacks of people who design these things not living in the real world and how most people approach personal finance (not a criticism of you or anyone taking up the scheme). Part of my role is actually to disseminate sometimes complex financial information in a way that a lay person should be able to understand. 
I suspect the thinking is that people could otherwise just withdraw the funds after two years and recycle the same money back in, effectively getting the bonus twice on the same savings. As it is the bonus could be recycled in to cover one of the additional two years. 

KenAdams2015

I've paid the max in and they've confirmed the final year 4 bonus of £600 is due on 10th or 14th May.

Could and SHOULD I withdraw (not close - I could withdraw £2,399 if withdrawing £2,400 whole amount automatically closes the account) the £2,400 (and my wife's too) and put in a savings account to get more interest for April.

Is it worth it and would that in any way risk getting the bonus?