HMRC is urging Britons to check if they may be able to benefit from a savings account scheme that boosts balances by as much as 50 percent.

The Government-backed Help to Save account is aimed at people who receive Working Tax Credit, Child Tax Credit, or Universal Credit, and as much as £1,200 can be amassed in “bonuses”.

In a post on X, formerly known as Twitter, HMRC wrote: “Did you know you could make 50p for every £1 you save with a Help to Save account?

“It’s a secure and flexible way to build up your savings – pay in what you can when you can. If you receive Working Tax Credit or Universal Credit you might be eligible.”

Savers have the flexibility to deposit between £1 and £50 each calendar month, with no obligation to invest every month. Additionally, savers can contribute to the account multiple times per month, as long as the total amount does not exceed £50.

The tax-free bonuses, worth 50 percent, become available at the end of the second and fourth years, and the amount is based on how much the person has saved.

How do Help to Save bonuses work?

After the first two years, savers will get the first bonus, which will amount to 50 percent of the highest balance saved.

After four years, savers get a final bonus if they continue to save. This bonus will be 50 percent of the difference between the two amounts:

• The highest balance saved in the first two years (years one and two)
• The highest balance saved in the last two years (years three and four)

The most Britons can pay into their account is £2,400 over four years, and the most that can be earned from savings in four years is £1,200. However, if the highest balance doesn’t increase, savers will not earn a final bonus.

The account will close four years after it’s opened and the saver will not be able to reopen it or open another one.

Who is eligible for a Help to Save account?

To open a Help to Save account, savers must be receiving the following benefits:

• Working Tax Credit
• Child Tax Credit (and are entitled to Working Tax Credit)
• Universal Credit and the person (with their partner if it’s a joint claim) had take-home pay of £722.45 or more in their last monthly assessment period.

For those who receive benefit payments as a couple, the person and their partner can apply for individual Help to Save accounts, but they will need to apply separately.

Savers must also be living in the UK, although people who live overseas can apply if they or their partner is a crown servant or a member of the British armed forces.

People can also keep the account even if they’ve stopped claiming benefits.

To apply, savers will need their Government Gateway user ID, password, and UK bank details. More information about that can be found here.