From today, 273,188 people on Tax Credits and Universal Credit with low incomes in the South West can benefit from a new Government savings account that offers a 50% bonus.
Help to Save rewards savers with an extra 50p for every £1 saved which, after four years of a maximum saving of £2,400, would hand them an overall bonus of £1,200.
In an eight-month trial, more than 45,000 customers deposited in excess of £3 million. The tax office claims Help to Save is easy to use, flexible and secure, and 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.
John Glen, Economic Secretary to the Treasury, and Salisbury MP, 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 hardworking person in this country.”
To apply, visit www.gov.uk/helptosave or use the HMRC app.
View an animation on Help to Save at: https://youtu.be/ryQ_JHayKoE