What is the help to save scheme? The help to save scheme is funded by the UK government. It is a type of savings account which allows people to get a bonus of 50p for every £1 they save within 2 to 4 years. The scheme is backed by the government so all savings in the scheme is secure.
Who is eligible? You need to be a UK resident also it allows only certain people entitled to working tax credits & people that are receiving universal credit.
How payments work. You can only save between £1 and £50 each calendar month. You can pay money into the account by using a debit card, bank transfer & standing order. You do not have to put money in every month if you can’t afford it. You can only save a maximum of £50 per month. You can only withdraw money from the account into your bank account. You also get a bonus at the end of every second & fourth year but this is only based on the amount you have saved.
How much will you get? You can only earn 2 tax free bonuses over the four years. After the first 2 years you will receive a bonus only if your have been using the account. This will only be 50% of the highest amount of money you have saved during the 2 year period. After 4 years you will get a final bonus if you continue to save, you will receive the bonus of 50% of the difference between the 2 amounts of the first 2 years and the 4 years. If your balance does not increase you will not receive your final bonus. The most you will receive is £1200 of your 4 year savings. Your bonus will only be paid into your bank account and not your savings account.
Will the scheme affect my benefits? UNIVERSAL CREDIT- If you or your partner have £6000 or less in a personal savings this will not affect how much you will receive of universal credit, this also includes any amount of savings you have in your help to save account. The help to save bonuses will not affect your universal credit payments. WORKING TAX CREDITS- Any bonuses or savings you earn through the scheme will not affect how much working tax credits you receive.
What happens after 4 years? Your help to save scheme account will automatically close after 4 years. You will not be able to open a new help to save scheme. You will be able to keep the money from your account. You can close your account at any time.
How do i apply? You can apply through two different options by applying on Help to save on Gov.uk or you can call 03003227093 and the HMRC helpline will help you get set up with an account.
The deadline for opening an account is september 2023!!