This Morning: Martin Lewis discusses Help to Save scheme
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Help to Save is a type of savings account, and it's intended to help people with savings if they're on a low income. The scheme is backed by the Government, and this means all savings in the scheme are secure.
It enables certain people eligible to get a bonus of 50 pence for every £1 that is saved over the course of four years.
There is a limit as to how much can be saved in the account.
Per calendar month, between £1 and £50 can be saved in the account.
However, money doesn't need to be paid in every month.
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© GETTYUniversal Credit UK: Person with savings
It can be deposited in the account via debit card, standing order, or bank transfer.
There's no limit as to how many times money can be paid in, provided it doesn't exceed the limit of £50 each calendar month.
The bonuses are earned over several years, with these being paid at the end of the second and fourth years.
The size of the bonus is based on how much has been saved.
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This will be 50 percent of the highest balance saved.
After four years, those who have continued to save will earn their final bonus.
This will be the difference between the two amounts of the highest balance saved in the first two years (years one and two) and the highest balance saved in the last two years (years three and four).
© GETTYUniversal Credit UK guide
If the highest balance doesn't increase in the last two years, a final bonus won't be earned.
Even if a person withdraws money during the four years, they will still get the bonuses they have earned.
As a maximum of £50 can be paid into the account each calendar month, over the four years, up to £2,400 can be paid in.
This means the most that can be earned from the savings in four years is £1,200 in bonus money.
The bonus is paid into the person's bank account, rather than their Help to Save account.
Who is eligible for a Help to Save account?
A person can open an account if they're:
- Receiving Working Tax Credit
- Entitled to Working Tax Credit and receiving Child Tax Credit
- Claiming Universal Credit and they (with their partner if it's a joint claim) earned £617.73 or more from paid work in their last monthly assessment period.
Additionally, they need to be living in the UK.
If a person lives overseas, they can apply for an account if they're either a:
- Crown servant or their spouse or civil partner
- Member of the British armed forces or their spouse or civil partner.