Saving money can be a challenge for many, and household outgoings can often seeming as though they’re never-ending. While setting aside money for the future may be the last thing on one’s mind with everyday living costs to cover, some may look to save what they can. Under the Help to Save scheme, some people, including certain Universal Credit claimants, could see their savings get a boost.
Help to Save is a type of savings account, and it allows certain people who are entitled to Working Tax Credit or receiving Universal Credit to get a bonus of 50 pence for every £1 they save over the course of four years.
This particular scheme is backed by the government, meaning the savings in the scheme are secure.
Those who are eligible can save between £1 and £50 each calendar month in this account, but they do not have to pay money in every month.
This can be done by debit card, standing order, or bank transfer.
Should a person withdraw money from their Help to Save account, gov.uk explains that they can only do this to their bank account.
At the end of the second and fourth years, the saver can get the bonuses, which are based on how much as been saved.
Then, four years after it was opened, the Help to Save account will close.
While a person will be able to keep the money from their account, they will not be able to reopen it or open another Help to Save account.
After the first two years, the first bonus from saving in the account will be paid – how much will it be?
The bonus will be 50 percent of the highest balance a person has saved.
This means that the saver will get any bonuses they’ve earned even if they withdraw money.
Fast forward to after four years, and the saver will get a final bonus if they have continued to save.