Help to Save account launched
Help to Save is a digital savings account designed to encourage working individuals and households on low incomes to save regularly. The accounts are secure, simple to use and flexible.
The scheme is open to working people eligible for Working Tax Credit or claiming Universal Credit. Savers will receive a tax-free Government bonus of 50p for every £1 of eligible savings instead of interest.
Once an account has been set up, it will run for four years (individuals can only open one account). Over the four years, people saving the maximum of £50 per calendar month can save £2,400; receiving a tax-free bonus of up to £1,200. There is no minimum account balance or monthly transfer needed to keep a Help to Save account open. Savers can also choose to skip payments, although the less money saved the smaller the final bonus.
Individuals can withdraw money at any time from their account. However withdrawing money will make it harder to increase the highest balance in the account, and therefore get the biggest bonus.
Account holders can choose to close their Help to Save account at any time but will not be entitled to any unpaid bonus and will be unable to re-open an account. Customers should ring the helpline if they want to close their account.
Eligible savers have up to five years to open an account (from September 2018), so they can decide when the time is right for them.
Who is eligible for Help to Save?
To be eligible for Help to Save, savers must be a UK resident and:
- be receiving Working Tax Credit; or
- have a nil award of Working Tax Credit but receiving Child Tax Credit; or
- be in receipt of Universal Credit with minimum individual or household earnings equivalent to 16 hours times the National Living Wage in their last income assessment period (that’s £542.88 during the financial year 2018-19).
If in Glasgow / Lanarkshire area for more info. and help to apply call the Financial Inclusion Team on 0141 847 0444.