Three million people could benefit from a savings scheme offering a 50 per cent bonus, following its extension to April 2025 earlier this year.
The account offers a boost of up to £1,200, if savers deposit the full amount over the four year period it runs for.
More than 359,200 people have already benefitted from the government savings scheme for low-income earners, known as Help to Save.
Eligible savers can deposit between £1 and £50 a month into the account each month.
The Help to Save account offers a 50 per cent bonus on the savings
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They will earn a 50 pence bonus for every £1 saved, with the bonus payments being paid in the second and fourth years.
If someone saved the maximum amount they an over four years, £2,400, then they would be able to get a bonus of £1,200 in total.
This is paid directly into the saver’s bank account.
Andrew Griffith, Economic Secretary to the Treasury, said: “Millions of people could benefit from a boost to their savings through Help to Save and thanks to our Spring Budget reforms the scheme has been extended until 2025.
“Whatever amount you can save will trigger a top-up from the Government, so take advantage and apply today.”
A person can open a Help to Save account if, when they apply, they are getting:
- Working Tax Credit
- Child Tax Credit and are entitled to Working Tax Credit
- Universal Credit and they (with their partner, if it is a joint claim) had take-home pay of £722.45 or more in their last monthly assessment period.
Accounts are open for a maximum of four years.
Savers can deposit money as many times as they like, as long as they don’t go above the monthly saving limit of £50.
It’s possible to withdraw money at any time, although this may affect the total bonus earned.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Help to Save can encourage positive saving habits – no matter what you can afford to save – and the 50 per cent government bonus payment can help savers when they need it most.
“It is quick and easy to apply online or via the HMRC app, just search ‘help to save’ on GOV.UK to find out more.”
LATEST DEVELOPMENTS:
Some Universal Credit recipients will be eligible for Help to Save
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How does the Help to Save bonus work?
Customers will get the first bonus after the first two years if they have used their account to save. The bonus will be 50 per cent of the highest balance saved.
If they continue to save, they will get the final bonus after four years.
This will be 50 per cent of the difference between 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)
If the highest balance doesn’t increase, a final bonus won’t be earned.
