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.
The launch of the new account follows an 8-month trial,
with over 45,000 customers who deposited over £3
million.
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.
, Economic Secretary to
the Treasury, 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.
Help to Save is available to working people on tax
credits and Universal Credit.
Paul Richard Hughes, from Torquay, said:
I wasn’t saving before, so it has helped me save and
it was easy to use.
It has enabled me to build up a savings pot and the
bonus is very good value. It is much better than
other savings accounts as the interest on other
savings accounts is low in comparison.
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.
- 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. It is also available to
those claiming Universal Credit who have a household or
individual income of at least £542.88 for their last
monthly assessment period (though note that payments
from Universal Credit are not considered to be part of
household income).
- 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.
10 things about Help to Save
- You get a 50% bonus on your savings, so you can
earn 50p for every £1 you save.
- Help to Save is available for working people who
receive tax credits or Universal Credit
– check if
you’re eligible.
- Opening online account takes, on average, less than
5 minutes.
- Paying in is easy: you can set up a standing order
to make regular payments into your Help to Save account
on a weekly, fortnightly, or monthly basis to fit the
way that you manage your money. You can also make
one-off payments by debit card when you are in your
online account. Note that any payments, including
standing orders, need to arrive in your account before
the last working day of the month to ensure they are
credited to that month – don’t get caught out by
weekends and public holidays.
- You can withdraw money at any time from your
account if you need to – although this could affect the
size of your bonus.
- You can continue to receive tax credits or
Universal Credit while saving with Help to Save.
- If your situation changes and you stop receiving
Working Tax Credit or Universal Credit, you can still
save and receive any bonus you are entitled to.
- Help to Save is backed by the government, which
means the money you save is secure.
- Help to Save accounts will be available to open
from 12 September 2018 and up to September 2023.
- If you don’t have access to the internet, you can
still get an account. Call 0300 322 7093 and our
helpline advisers will help you set one up.
