Government extends Help to Save scheme to boost your savings by 50 percent - how to apply
The government has extended the scheme which gives savers a 50 percent bonus until 2025
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A government saving scheme to help low-income earners has been extended for more than a year to help people save more money. The government has announced the Help To Save scheme - which was due to end in September has now been extended until April 2025.
The scheme offers low-income earners a 50 percent bonus payment worth up to £1,200 over four years when they deposit between £1 and £50 into their account – even if money has been withdrawn.
Help to Save was launched in 2018 to encourage positive saving habits – no matter what you can afford to save. Andrew Griffith, Economic Secretary to the Treasury, said: “Millions of people could benefit from a boost to their savings through Help to Save and thanks to our Spring Budget reforms the scheme has been extended until 2025.
“Whatever amount you can save will trigger a top up from the Government, so take advantage and apply today.”
Savers will earn a 50 pence bonus for every £1 saved and the bonus payments are paid in the second and fourth years. This means that someone saving £2,400 - the maximum amount they could deposit over four years - would receive a £1,200 bonus from the government, paid directly into their bank account.
More than 359,200 customers have opened savings accounts since its launch in September 2018 and an additional three million individuals could still benefit from the savings scheme as a result of the extension.
Am I eligible for Help to Save Scheme?
Individuals can open a Help to Save account if, when they apply, they are receiving:
- Working Tax Credit
- Child Tax Credit and are entitled to Working Tax Credit
- Universal Credit and they (with their partner, if it is a joint claim) had take-home pay of £722.45 or more in their last monthly assessment period.
How to apply for Help to Save Scheme
Setting up a Help to Save account online is quick and easy to do, and takes less than 5 minutes to sign up. Eligible individuals can find out more and how to apply on GOV.UK or via the HMRC app.
Help to Save savings explained
Accounts are open for a maximum of four years and individuals can make deposits as many times as they like by debit card, bank transfer or standing order, without going over the monthly saving limit of £50. Individuals can also withdraw money at any time, although this may affect their 50% bonus payments.