The Government has launched a new savings scheme with gives a bonus of up to £1,200 to people who work but are on low incomes.
Help to Save, which is available to working people on tax credits and Universal Credit, is a new type of savings account designed for low paid workers. You can save between £1 and £50 every month and after two years you’re paid a 50% bonus (up to a maximum of £600). You’ll then receive a further 50% bonus after 4 years (a maximum of £600 again).
This return is much better than anything you’ll find on the high street and the £1,200 you could receive is a bonus not interest. You receive it based upon the maximum amount in your account over the 2 year period. This means you can build up your savings until you need them and then use your savings instead of borrowing – but you’ll still be rewarded for the fact that you saved in the first place.
To open an account you need to be a UK resident and:
- Entitled to working tax credit and receiving working/child tax credit payments
- Claim Universal Credit and have an individual/household income from employment of £542.88 or more for the last monthly assessment period.
Full details of the Help to Save Scheme can be found at: https://www.gov.uk/get-help-savings-low-income