Hardworking people on low incomes can benefit from a new Government savings account that offers a 50% bonus. Help to Save will reward savers with an extra 50p for every £1 saved, meaning over 4 years a maximum saving of £2,400 would result in an overall bonus of £1,200.
Help to Save is easy to use, flexible and secure, will help those on low incomes build up a ‘rainy day’ fund, and encourage savings behaviours and habits. How much is saved and when is up to the account holder, and they don’t need to pay in every month to get a bonus.
Help to Save is available to working people on Tax Credits and Universal Credit.
Account holders can save between £1 and £50 every calendar month and accounts last for four years from the date the account is opened. After two years, savers get a 50% tax-free bonus on savings. If saving continues there is another 50% tax-free bonus after four years.
On maximum savings of £2,400 over 4 years, the overall bonus would be £1,200.
To apply, savers can visit www.gov.uk/helptosavelocal or use the HMRC app.
If you require further help managing your finances you can visit our Clarion Futures Money and Digital services.