The government will provide you with an additional bonus equal to fifty percent of whatever you have saved through the Help to Save program. This program is supported by the government.
According to The Sun, if you save the maximum amount allowed each year, you may end up with a bonus of 1,200 pounds after four years.
Tom Selby, head of retirement policy at AJ Bell, stated in an interview with The Sun that only 2.5 percent of those who are qualified for Help to Save have signed up for the program. This indicates that 5.6 million people who get benefits such as Universal Credit are eligible for the accounts.
Who exactly qualifies, and what exactly is this “Help to Save” program anyway? Everything that you need to know is included below.
What is the initiative to help people save more money?
The Help to Save scheme is a form of savings account that enables certain people who are eligible for Working Tax Credit or who are receiving Universal Credit to get a bonus of 50p for every £1 that they save, spread out over a period of four years. This bonus is paid out as part of the Help to Save scheme.
Because the plan has the support of the government, any money saved through it is guaranteed to be safe.
In addition, you are not required to pay any money in every month, and you can save anything from one pound to fifty pounds every single calendar month.
You can, alternatively, deposit funds into your Help to Save account through the use of a debit card, a standing order, or a bank transfer.
You are free to make payments whenever it is convenient for you throughout the month; however, the total amount of money that can be contributed in a single calendar month is limited to £50. If you have saved £50 by the 8th of January, for instance, you will not be allowed to make another deposit until the 1st of February.
According to a story from The Sun, over 359,000 Help to Save accounts have been opened since the program’s introduction in 2018, yet more than 48,000 of those accounts have never had any money deposited into them.
In addition, around 143,000 individuals have saved the maximum amount of fifty pounds each month into these accounts.
Tom stated, “These individuals are in a position to receive a supplement of 1,200 pounds to their savings. This sum of money may serve as a contingency fund for them and serve as a springboard for them to save and invest more money in the future.”
However, these statistics demonstrate that just a small percentage of households with low incomes are taking advantage of this lucrative program.
Who is qualified to apply?
You will need to satisfy one of the following requirements in order to be eligible for a Help To Save account:
To qualify for the Working Tax Credit, you will need to receive it.
Both the Working Tax Credit and the Child Tax Credit will be applied to your taxes.
You have submitted an application for Universal Credit, and your most recent monthly assessment period saw you earn at least £658.64 from paid work (along with your partner, if it’s a joint claim).
The accounts are also limited to one per person rather than one per household; hence, if both you and your partner meet the requirements, you will each be able to open your own account.
In order to be eligible, you are required to be located in the United Kingdom.
In what ways is it different from other types of savings accounts?
Help to Save is the most beneficial savings account available, with an unrivaled bonus of fifty percent that cannot be surpassed. It also comes with the advantage of being easy to access, which means that you can get at your money whenever you need to and you won’t lose your bonus in the process. This is an additional benefit.
Tom stated the following in an interview with The Sun: “One of the massive benefits of the scheme is its flexibility, as savers can withdraw their money whenever they need it, and they will still get a bonus equivalent to half of their highest balance. This is one of the massive benefits of the scheme.”
If you need to withdraw some cash, you won’t be charged a fee because of this feature.