The UK government recently released their new scheme giving those claiming universal credit or working tax credit a bonus on their savings account.
The scheme will give a boost of 50% on the amount saved, up to £1,200. If you have anything over £1,200 in your account, you will only be entitled to a bonus of £600.
So how does it work?
Each calendar month, you can save between £1 and £50 by debit card, bank transfer or standing order. You can add to the account as many times as you like, but no more than £50 each calendar month. If you have a month or two where you cannot save any money, don’t worry! You do not have to pay into the account each month.
You can withdraw the money from your Help to Save account at any time by transferring it directly to your bank account.
How do you get the bonuses?
After the first 2 years of having the account, you will receive your first bonus. It will be 50% of the highest balance you’ve saved, so do not worry about withdrawing money.
After 4 years, you’ll get your final bonus if you continue to save. This bonus will be 50% of the difference between the highest balance saved in the first two years, and the highest balance saved in the last 2 years.
After 4 years, the Help to Save account will close and you will not be able to open it, however, you will of course get to keep the money from the account.
So, to round up. The most you can save each month is £50, which equals £2,400 over 4 years. The most you can earn from your savings in 4 years is £1,200 in bonus money. Any bonus earned is paid into your bank account, not the Help to Save account.
Do I qualify?
Click here to find out if you qualify and for more information about the Help to Save account and how you can sign up!
How can Moneyhub help?
Using the Moneyhub app will allow you to see how you can cut back on your spending to be able to add to your Help to Save account. Once you have connected all your accounts, Moneyhub will intuitively categorise your transactions. Our Spending Analysis feature will show you exactly where your money is going each month, so you can see how much you are spending on groceries, leisure, shopping and takeaways!
Click here to sign up and receive 6 months free with no auto-renewal, so you don’t have to worry about those sneaky subscription fees.