1. What is the Help To Save Scheme?

The Help To Save scheme is a UK government initiative that offers a 50% bonus on savings for people receiving certain benefits. It helps low-income individuals build savings while receiving substantial government bonuses.

2. How Does the Calculator Work?

The calculator uses the compound interest formula with government bonus:

Where:

• \( FV \) — Future value (GBP)
• \( P \) — Principal amount (GBP)
• \( r \) — Annual interest rate (decimal)
• \( n \) — Number of compounding periods per year
• \( t \) — Time in years
• \( bonus \) — Government bonus amount (GBP)

Explanation: The formula calculates compound interest on your savings and adds the government bonus to determine the total future value.

3. Importance of Help To Save Calculation

Details: Calculating potential savings helps individuals understand the benefits of the scheme, plan their savings strategy, and maximize government bonuses for financial security.

4. Using the Calculator

Tips: Enter principal amount in GBP, annual interest rate as decimal (e.g., 0.05 for 5%), number of compounding periods per year, time in years, and government bonus amount. All values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Who is eligible for Help To Save?
A: UK residents receiving Working Tax Credit, Child Tax Credit, or Universal Credit with minimum earnings threshold.

Q2: How much bonus can I get?
A: The scheme offers 50p bonus for every £1 saved over 4 years, with maximum bonus of £1,200.

Q3: How often are bonuses paid?
A: Bonuses are paid at the end of the second and fourth years of the account.

Q4: Can I withdraw money anytime?
A: Yes, you can withdraw money at any time, but this may affect your bonus payments.

Q5: How long does the scheme last?
A: The Help To Save account runs for 4 years from the date it's opened.