Britons could kickstart 2022 with a savings account offering £1,200 bonus – act now
Martin Lewis gives advice on ‘Help to Save’ government scheme
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Millions of Britons could be missing out on a vital Government bonus by failing to take advantage of the scheme on offer. It is called the Help to Save account, and as the name suggests, it could provide a significant form of assistance to Britons. The savings account is specifically designed to provide assistance to individuals on a low income.
It allows those entitled to Universal Credit or Working Tax Credit to get a bonus on what they save into this account.
The bonus is worth 50p for every £1 someone saves over four years.
Each calendar month, people will be able to save between £1 and £50 – but they do not have to pay money in every month.
Individuals will be able to pay in as many times as they like, but the most they can pay in is £50 in one calendar month.
For example, if someone saves £50 by January 8, 2022, they will not be able to pay in again until February 1.
People can earn two tax-free bonuses over four years, and individuals will get any bonuses they have earned even if they withdrawn money.
After the first two years, savers will get a bonus if they have been using their account to save.
The bonus will be 50 percent of the highest balance a person has saved.
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After four years, individuals will get a final bonus if they continue to save, and this bonus is 50 percent of the difference between two amounts:
- The highest balance saved in the first two years (years one and two)
- The highest balance saved in the last two years (years three and four)
If a person’s highest balance does not increase, then they will not earn a final bonus.
With the maximum amount saved each calendar month being £50, Britons can save £2,400 over a four year period.
Therefore, the most a person can earn from their savings in four years is £1,200 in bonus money.
With the advantage of this account available, many people will wish to check if they are eligible.
People can open a Help to Save account if they are any of the following:
- Receiving Working Tax Credit
- Entitled to Working Tax Credit and receiving Child Tax Credit
- Claiming Universal Credit and a person earned £617.73 or more from paid work in their last monthly assessment period
If a couple get payments together, they can apply for their own Help to Save accounts. However, this will have to be done separately.
Individuals also need to be living in the UK, except in a set number of circumstances.
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If a person is a Crown servant, or a member of the British armed forces, they should be able to apply for a Help to Save account.
The Help to Save account is designed to be simple to apply for, so Britons can take advantage in 2022.
To apply, people will need a Government Gateway user ID and password on the Government’s official website.
Those who do not have a user ID will be able to create one when they apply.
Finally, individuals will need to provide their UK bank details when making an application.
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