Millions of Britons could be eligible for a £1,200 boost to their savings via the Help to Save scheme.
Savers can get a 50 per cent government bonus on their cash over four years.
The government savings scheme is for low-income earners and receiving benefits such as Working Tax Credit, Child Tax Credit and Universal Credit.
Thousands customers have opened savings accounts since its launch in September 2018.
Last year HMRC confirmed that the scheme would be extended to April 2025 so that more people can benefit from the extra cash.
An additional 3 million individuals could still benefit from the savings scheme as a result of the extension.
An additional 3 million individuals could still benefit from the savings scheme
PARecent HMRC figures show almost 450,000 customers opened a Help to Save account between September 2018 and March 2023, receiving £146million in bonus payments.
Once the account is open, Britons can deposit between £1 and £50 into the account each month - money does not need to be paid in every month.
They will then earn a 50 pence bonus for every £1 saved.
The bonus payments are paid in the second and fourth years.
It means that someone saving the maximum amount possible of £2,400 would get a total of £1,200 in bonus payments.
Money can be paid in at random time, but the most someone can pay in each calendar month is £50.
If someone has saved £50 by June 12, they will not be able to pay in again until July 1.
In their report, HMRC stated: "Setting up a Help to Save account online is quick and easy to do, and takes less than 5 minutes to sign up."
The money is paid directly into the savers’ bank accounts, rather than the Help to Save account.
Who is eligible?
Savers can open a Help to Save account if they’re receiving:
- Working Tax Credit
- Child Tax Credit – and they’re entitled to Working Tax Credit
- Universal Credit and they (with their partner if it’s a joint claim) had take-home pay of £722.45 or more in their last monthly assessment period.
If someone stops claiming benefits, they can keep using their Help to Save account.
Saving money through a Help to Save account could affect one’s eligibility for certain benefits and how much they get.
People can also still keep the account even if they’ve stopped claiming benefits.
To apply for the account, savers will need their Government Gateway user ID and password, as well as their UK bank details.
More information about that can be found on the Government website.
