Hardworking people on low incomes are set to benefit from a new government savings account that offers a 50% bonus. The launch of the new account follows an 8-month trial, with over 45,000 customers who deposited over £3 million.
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 encourages 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.
Account holders can save between £1 and £50 every calendar month and accounts last for 4 years from the date the account is opened.
After 2 years, savers get a 50% tax-free bonus on savings. If saving continues, there is another 50% tax-free bonus after 4 years.
On maximum savings of £2,400 over 4 years, the overall bonus would be £1,200.
Savers can apply online or use the HMRC app.
Help to Save
- the scheme, administered by HM Revenue and Customs, will be open to UK residents who are entitled to Working Tax Credit and receiving Working Tax Credit or Child Tax Credit payments.
- people living overseas who meet either of these eligibility conditions can apply for an account if they are: a Crown servant (or their spouse or civil partner); a member of the British armed forces (or their spouse or civil partner).
- Help to Save is an example of digital transformation designed to make it quicker and easier for citizens to interact with government online and on-demand. The #SmarterGov campaign has been launched to drive innovation, savings, and public service improvement across the public sector.