Saving can be a bit of a chore, especially when the interest on you account seems to only give you peanuts.
But a new government scheme, Help to Save, is set to make saving a lot more exciting and even promises to pay you for pretty much going about your daily business.
Read on to find out how you might be able to bag up to £1200 on your savings!
The Help to Save scheme is a initiative which aims to help low income people make the most of their savings.
After being trialed in January 2018, the Help to Save scheme has only just been fully rolled out around the UK and it’s estimated that more than 3.5 million people are eligible for it.
Help to Save is a basically a new form of bank account which rewards savers with 50p for every £1 saved.
All account holders have to do is deposit from £1 to £50 in this account every month.
This can be done really easily via online banking or even over the phone.
If you deposit the maximum of £50 every month for four years, for example, you’d have saved £2,400 and earned £1,200 as a bonus – nabbing yourself a nice round total of £3,600!
Explaining the rational behind the new account, John Glen, economic secretary to the Treasury, said: ‘Savings shouldn’t be a luxury; they are an essential part of planning for the future.
‘But for some, putting away even a tenner each month can be a tough habit to get into. Whether you’re saving up to take the family on a much-needed holiday, or to take the next step in life, Help to Save is designed to make saving possible for every hard-working person in this country.’
Unfortunately the bonus does not start trickling into your account as soon as you open it.
Account holders do need to show a little patience when saving as they must maintain the account for 2 years before they actually receive their bonus.
This 50% bonus on your total savings after 2 years gets paid into your current account and so does not count towards your Help to Save savings limit.
The good news is that the account is flexible as well as you don’t have to deposit a payment every month to qualify for the bonus and you can withdraw money at any time.
Ask yourself these questions and you might just find out that you fit the criteria!
- Are you entitled to working tax credit and receiving working tax credit or child tax credit payments?
- Are you claiming universal credit and have a household or individual income of at least £542.88 for their last monthly assessment?
- Are you a Crown civil servant or a spouse or partner of someone who is?
- Are you a member of the British Armed Forces or their spouse or partner?
If your answers to the above has been yes then make sure you don’t miss out on making the most of your savings!
Don’t worry if you think your circumstances might soon change, though, as if you stop receiving working tax credits or universal credit, for example, you can still save with the Help to Save account and be entitled to your bonus.
If you only want to have a Help to Save account for a short period of time, also bear in mind that closing it too early could result in you losing your bonus and you will not be able to open a new one.
To apply, savers can visit gov.uk/helptosave or use the HMRC app