If you receive tax credit or universal credit this is for you!
Help-to-save scheme is launched
Estimated 3.5 million people on low incomes eligible for accounts earning 50p for every £1 saved
The government has launched the help-to-save scheme designed to assist low-paid workers build up savings by giving them 50p for every £1 they save.
An estimated 3.5 million people on working tax credit or universal credit will be given a 50% bonus on every £1 saved over a four-year period. In comparison, high street banks offer a typical interest rate of 1-2%on savings bonds.
Savers under help to save can deposit between £1 and £50 every month, with the bonuses added at the halfway point and at the end of the four years. £2,400 is the maximum an individual can save, with a maximum £1,200 bonus.
Savers hoping to benefit from help to save will have to open an account online using their “government gateway” ID then pay in by debit card or standing order. The government said the system was easy to use and would help people on low incomes to build up a “rainy day fund”. Savers do not have to pay money in monthly, but £50 is the most they can deposit in any given month.