‘Best’ bank account offers free £1,200 to 1 group of savers | Personal Finance | Finance

A certain group of Brits is eligible for an exclusive bank account, offering £1,200 free money. HM Revenue and Customs (HMRC) is offering the bonus payment to Universal Credit claimants through Help To Save.

The scheme, which Martin Lewis called “by far the best-paying form of saving”, allows people on Universal Credit to receive a 50p bonus for every £1 they save over four years. Savers can contribute to their account as often as they like, but the maximum monthly deposit is £50, which would earn them a £25 bonus. Therefore, those who deposit the maximum amount of £2,400 over four years will be eligible for a bonus worth £1,200.

Over a four-year period, you can receive two tax-free bonuses, paid at the end of the second and fourth years. These are based on how much money you’ve saved during these periods, so you’ll get 50% of the highest balance you’ve saved.

HMRC explains: “After your first two years, you’ll get a first bonus if you’ve been using your account to save. This bonus will be 50% of the highest balance you’ve saved.

“After four years, you’ll get a final bonus if you continue to save. This bonus will be 50% of the difference between two amounts:

“If your highest balance does not increase, you will not earn a final bonus. The most you can pay into your account each calendar month is £50, which is £2,400 over four years. The most you can earn from your savings in four years is £1,200 in bonus money. Your bonus is paid into your bank account, not your Help to Save account.”

The Help to Save scheme has been extended until April 2027, allowing anyone working and receiving Universal Credit to open an account. According to HMRC, it takes less than five minutes to set up an account, which can be easily managed via GOV.UK or the HMRC app.

In a call to action for individuals to apply, HMRC posted on X (formerly Twitter): “Want to boost your savings? With Help to Save, for every £1 you save, the Government adds 50p. That’s up to £1,200 in bonus payments over four years. Check eligibility and apply today via the HMRC app.”

Nearly 18,500 people opened a Help to Save account through the HMRC app in 2024, which enables users to view their account, check their balance and bonus details, and make a deposit via debit card, bank transfer or standing order. Money can be withdrawn at any time, although this may impact the 50% bonus payments.