One account is offering the ability for people to secure a bonus of up to £1,200.
The Help to Save account is specifically designed to provide assistance to individuals on a low income.
It allows those entitled to Universal Credit or Working Tax Credit to get a bonus on what they save into this account.
Savers can pay in to the account as many times as they like, but the most they can pay in is £50 in one calendar month.
For example, if someone saves £50 by October 15, they will not be able to pay in again until November 1.
The bonus is worth 50p for every £1 someone saves over four years.
Each calendar month, people will be able to save between £1 and £50.
Britons do not need to deposit money every month however the bonus is paid on the highest balance a person has saved.
After four years, individuals will get a final bonus if they continue to save, and this bonus is 50 percent 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 a person’s highest balance does not increase, then they will not earn a final bonus.
With the maximum amount saved each calendar month being £50, Britons can save £2,400 over a four-year period.
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Therefore, the most a person can earn from their savings in four years is £1,200 in bonus money.
The scheme was due to close to new applicants in September but it was announced in the Budget it will be extended until April 2025.
Money can only be withdrawn by transferring funds from the Help to Save account to a person’s bank account.
A Help to Save account can be closed at any time although this does mean a person will lose their bonus and will not be able to set up a new one.
People can open a Help to Save account if they’re receiving:
- Working Tax Credit
- Child Tax Credit – and you’re entitled to Working Tax Credit
- Universal Credit and you (with your partner if it’s a joint claim) had take-home pay of £722.45 or more in your last monthly assessment period
Universal Credit claimants may also be eligible, if the claimant, or together with their partner for joint claims, had take-home pay of £658.64 or more in their last monthly assessment period.
Joint claimants can open a Help to Save for each person but they will need to apply separately.
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