If you’re working and receiving tax credits or Universal Credit, a new Government savings scheme, called Help to Save, could help you build your savings.
Under the scheme, if you save between £1 and £50 every calendar month, after two years you’ll receive a 50% tax-free bonus on your savings (50p for every £1 saved). And if you continue saving you could get another 50% tax-free bonus after four years.
This means after four years you could receive tax-free bonuses worth up to £1,200, to spend how you like.
You can pay money into your Help to Save account by debit card, standing order or bank transfer. You can pay in as many times as you like, but the most you can pay in each calendar month is £50.
Money can be withdrawn from your account at any time, but it can affect your bonus. You can continue to receive tax credits or Universal Credit while saving with Help to Save and your Universal Credit award will only be affected if all your total savings are over the current £6,000 savings limit.
If your situation changes and you stop receiving tax credits or Universal Credit, you can still keep your account, pay in money, and get any bonuses you’re entitled to.
How to Apply
Opening an online account is simple. You can check your eligibility and open an online account within minutes by visiting www.gov.uk/helptosave or through the HMRC app. If you don’t have access to the internet, you can still open an account by calling 0300 322 7093