More than 132,000 people have signed up to the government-backed savings account Help to Save, depositing more than £31.4 million.
The account offers working people on low incomes a 50% bonus on what they save –rewarding them with 50p for every £1 they put away. Over four years, a maximum bonus of £1,200 is available on savings of up to £2,400.
Statistics published in late August show that those using help to save accounts are already eligible for bonuses totalling around £14 million. The accounts make saving affordable, achievable and worthwhile.
An HMRC spokesman said: “Help to Save is easy to use, flexible and secure. It helps those on lower incomes build up a ‘rainy day’ fund, and encourages a long-term savings habit. 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.”
Help to Save is available to working people on Tax Credits, or Universal Credit claimants with a minimum earned income equivalent to 16 hours per week at the National Living Wage in their last assessment period.
Account holders can save between £1 and £50 every calendar month and accounts last for four years from the date the account is opened. After two years, savers get a 50% tax-free bonus on the highest balance they’ve achieved. If they continue saving, they could receive another 50% tax-free bonus after a further two years. On maximum savings of £2,400 over four years, the overall bonus would be £1,200.
To check eligibility go to https://www.gov.uk/get-help-savings-low-income.