HSTM04400 - Bonus: end of maturity period
The end of the maturity period is normally after 48 months, however, this can be earlier if the account holder becomes terminally ill or dies.
The amount of bonus payment is calculated by multiplying A by B where:
- A is the number of whole pounds in the qualifying balance, and
- B is 50 pence.
The qualifying balance, in the case of a bonus that is paid at the end of the maturity period, if later than at the end of the first bonus period, is the highest balance of a Help-to-Save account achieved after the first bonus period, less the highest balance of the account achieved in the first bonus period (if any).
In calculating any qualifying balance, the following are to be disregarded:
- The amount of any bonus paid by the authorised account provider, NS&I, under the terms of the Help-to-Save account
- Any sum paid in to the Help-to-Save account in breach of the £50 monthly limit
- Any sum paid in to the account when the account holder does not meet the UK connection condition
Example
Jack saves regularly into his Help-to-Save account and has built up a balance of £300 after 18 months. However, he is then forced to withdraw all of his savings (£300) to pay an unexpected bill.
After beginning to save again, Jack’s balance, after 24 months of the account being opened, is £50. As Jack’s qualifying balance (highest balance) was £300 at the first bonus period, he receives a bonus on the £300 saved. This is calculated by multiplying £300 x 0.50 pence = £150. The bonus amount is paid into a separate, nominated account.
Jack continues to save money in to his Help-to-Save account and the balance of his account is £650 at the end of the maturity period (after 48 months of the account being opened). To calculate the bonus Jack will receive at the end of the maturity period, you deduct the qualifying balance achieved at the end of the first bonus period from the highest balance achieved by the end of the maturity period.
Jack’s highest account balance achieved at the end of the maturity period was £650.
Jack’s qualifying balance achieved at the first bonus period was £300
£650-£300= £350
This means that Jack’s qualifying balance at the end of the maturity period is £350.
To calculate Jack’s bonus at the end of the maturity period you multiply his qualifying balance of £350 by 0.50 pence to get £175.
Therefore Jack’s bonus at the end of the maturity period is £175.
If the end of the maturity period falls before the first bonus period, for example if the account holder dies or becomes terminally ill, the bonus is calculated by multiplying the qualifying balance by 0.50 pence. The qualifying balance is the highest balance of an account achieved up to the end of the maturity period.