More than 90,000 people have signed up to the Government’s new saving account – Help to Save – depositing over £13 million.
The account offers working people on low incomes a 50% bonus, rewarding savers with 50p for every £1 saved. Over four years, a maximum bonus of £1,200 is available on savings of up to £2,400. More than 250 people each day are taking up the offer and customers are making the most of its maximum £50 a month deposit, saving on average around £47 each month.
Separate research published by HMRC today 28 February shows that Help to Save makes saving achievable, affordable and worthwhile, with some participants now seeing themselves as ‘savers’ rather than ‘spenders’.
John Glen, Economic Secretary to the Treasury said:
“Savings are an essential part of planning for the future, so it’s good to see thousands of people getting into the habit with Help to Save.
“Anyone who is eligible should take a look and sign up. It’s flexible, secure and easy to use. Even if you can only save a small amount each month, it will help you prepare for whatever the future brings, and you’ll get a 50% boost on your savings from the government, too.”
Help to Save 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, apply and get more information savers can visit www.gov.uk/helptosave or use the HMRC app.