How is the Help to Save bonus paid?
You can earn two tax-free savings bonuses that’ll be paid into your own bank account (not your Help to Save account). The bonus is based on how much you’ve saved.
Even if you’ve withdrawn money from your savings, you could still be entitled to a bonus. However, you'll be affecting your chances of earning the maximum bonus by doing so.
The first bonus is paid at the end of the second year, and will be 50% of the highest balance saved. For example, if you saved the maximum £50 every month, at the end of the two years you’d have saved £1,200. Your bonus would be 50% of that - £600.
The second bonus is paid at the end of the fourth year, and is 50% of savings you pay into the account above the highest balance you’ve saved.
For example, if you continue to save £50 a month you’ll be adding another £1200 to your savings pot and you'll receive another £600 bonus.
However, if you withdraw all the money you save after two years and then carry on saving, you won’t get a bonus in year four because your highest balance would never go over £1,200.