HSTM04300 | Bonus: first bonus period at 24 months after the account is opened

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 first bonus period, is the highest balance of the account achieved in that period excluding amounts that are to be disregarded listed above.

Example

Emma opens a Help-to-Save account into which she makes regular payments. After 24 months her balance is £500 because she has made withdrawals, but during the period her highest balance was £600 - this is her qualifying balance, which attracts a bonus of £300.

If we use the formula set out above to work out the bonus due on Emma’s account, the bonus is calculated as follows:

A=£600 (Emma’s qualifying balance)

x

B=50 pence

600 x 0.50 = 300

Therefore the bonus due to Emma is £300.