Help to Save is a savings scheme for people on low incomes who are claiming certain benefits. Help to Save gives you a bonus payment from the government of up to 50% on savings paid into the account.

• You can save between £1 and £50 into the account each month and have the account for up to four years.
• You do not have to pay money in every month.
• You can earn 2 tax-free bonuses over 4 years. You’ll get any bonuses you’ve earned, even if you withdraw money.
• After your first 2 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.
• You can close your account at any time, but if you do, you will miss the next bonus payment.

You can open a Help to Save account if you’re receiving Universal Credit and you (with your partner if it’s a joint claim) had take-home pay of £1 or more in your last monthly assessment period.

If you get payments as a couple, you and your partner can still apply for your own Help to Save accounts. You need to apply separately.

Bear in mind, saving money through a Help to Save account could affect your eligibility for certain benefits and how much you get.

If you or your partner has £6,000 or less in personal savings, this will not affect how much Universal Credit you get. This includes any savings in your Help to Save account.

Your Help to Save bonuses will not affect your Universal Credit payments or Housing Benefit payments.

Money Saving Expert shares their best current accounts and switching bonuses you could receive, as well as the best credit unions:

• Money Saving Expert – Best current accounts and switching bonus
• Money Saving Expert – Credit Unions and Community Banking

Credit unions are often able to lend to people who might not be able to borrow easily from more traditional financial institutions. And credit unions are often willing to loan smaller amounts at lower rates than most banks or building societies are prepared to do.

Here are some examples of credit unions below:

• Borrowing from a credit union | MoneyHelper
• Find Your Credit Union – search to find credit unions near you
• Welcome to Leeds Credit Union | Home (also serves Wakefield and Harrogate)
• Community First Community Bank
• Community First Credit Union – Selby Advice | Selby Advice

Credit union Christmas savings club

A Credit union Christmas club account is a savings account that gives peace of mind by making saving for winter expenses easy.

Whether it’s saving for Christmas presents or getting a head start on your winter bills. You can save as much or as little as you like.

You can make unlimited withdrawals between 1 November  and 24 December each year.

• Leeds Credit Union Christmas club
• Community First Christmas club

Other Christmas savings clubs

You might be tempted to join a Christmas savings club, but they won’t offer you interest on your savings and come with a greater risk than saving through your bank or building society.

Christmas savings schemes are not regulated in the way that banks and building societies are. If the Christmas club you’re saving with goes out of business, you might lose all the money you put into it.

You’re also quite likely to receive your money back in vouchers, which are not always easy to spend in full and give you a limited range of retailers to spend it with.