Britons could get a £1,200 bonus with this savings account

Martin Lewis gives advice on ‘Help to Save’ government scheme

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Help to Save is a government savings account that pays 50p for every £1 saved to people on certain benefits. Over the course of four years, that adds up to £1,200 in free cash so why aren’t Britons making the most of it?

Unfortunately not everyone can apply for a Help to Save account, however millions of people who are eligible are missing out.

The option is available to people on Universal Credit, Child Tax Credits or Working Tax Credit to encourage them to start a health savings habit.

Despite this more than three million people who would qualify for one of these accounts haven’t set one up.

Saving the maximum of £50 every month for four years will mean Britons receive bonuses of up to £1,200 from HM Revenue and Customs (HMRC).

READ MORE: Capital Gains Tax update: Do this one thing before the end of the year

One of the reasons people may not be jumping at the chance could be that it’s difficult to save when taking home a low wage.

That said, savers do not have to put aside the maximum amount of £50.

People can save as little as they want but will only get the maximum benefit if they can manage £50.

If they could stretch to this, not only would it mean £1,200 in free Government cash, but it would also mean Britons have a savings pot of their own so in total will add up to £3,600.

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This significant sum could help Britons become debt free, finance driving lessons for grandchildren or go towards a retirement fund.

The other reason that millions of Britons could be missing out is that they don’t know about the scheme.

However, experts have been recommending the savings account, including financial guru Martin Lewis.

Martin says it’s a no-brainer and anyone who qualifies should take advantage.

He said: “For those who are on a low income, for example you’re on Universal Credit, you can put up to £50 pounds a month, over two years.

“And it pays you a bonus 50 percent on the highest amount you have.”

To open a Help to Save account, UK residents must be:

  • Receiving working tax credit or child tax credit

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  • On Universal Credit and have earned income of at least 16 hours a week at the National Living Wage (from April 1, 2021, this is equivalent to £617.76 a month) in the previous assessment period.

The good news is that out of 284,000 accounts that have been opened, 91 percent of account holders have been putting away the maximum of £50 per month.

That should mean they have a nice little nest egg after four years.

It is quick and easy to set up an account, just search ‘help to save’ on Gov.uk.

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