From today, 454,497 hardworking people on low incomes in London are set to benefit from a new Government savings account that offers a 50% bonus.
Help to Save will reward savers with an extra 50p for every £1 saved, meaning over 4 years a maximum saving of £2,400 would result in an overall bonus of £1,200.
The launch of the new account follows an eight-month trial, with more than 45,000 customers who deposited over £3 million.
Help to Save is easy to use, flexible and secure, will help those on low incomes build up a ‘rainy day’ fund, and encourage savings behaviours and habits.
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.
John Glen, Economic Secretary to the Treasury said:
“Savings shouldn’t be a luxury, they are an essential part of planning for the future. But for some, putting away even a tenner each month can be a tough habit to get into. Whether you’re saving up to take the family on a much-needed holiday, or to take the next step in life, Help to Save is designed to make saving possible for every hardworking person in this country.”
Help to Save is available to working people on Tax Credits and Universal Credit.
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 savings. If saving continues there is another 50% tax-free bonus after four years.
On maximum savings of £2,400 over 4 years, the overall bonus would be £1,200.
To apply, savers can visit www.gov.uk/helptosave or use the HMRC app.
View an animation on Help to Save at: https://youtu.be/ryQ_JHayKoE