Martin Lewis provides advice on help to save accounts
Get pensions news and advice plus latest money alerts for FREE now
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
The Help to Save account allows certain benefit recipients to get 50p for every £1 they save over four years. The account has a monthly deposit limit of £50, meaning that over the four years Britons could save £2,400 and earn an extra £1,200 boost.
The Help to Save account is Government-backed, ensuring that Britons’ funds are safe and their 50p per £1 bonus is secure.
Britons do not necessarily have to put money into the account every month, but they cannot put more than £50 in one calendar month.
They can transfer money into the account through debit cards, standing orders or bank transfers.
Help to Save also offers an unlimited amount of deposits, so long as the total amount stays below £50.
Savers can potentially get 50 percent interest for four years (Image: GETTY)
The account has a set term of four years, with bonuses being paid at the end of the second year and fourth year, based on how much one has saved.
After the first two years, the bonus will be 50 percent of the highest balance they have saved.
After four years, the final bonus will be 50 percent of the difference between two sums:
- The highest balance saved in the first two years
- The highest balance saved in the last two years.
What is Universal Credit? (Image: GETTY)
If one’s highest balance does not increase they will not receive a final bonus.
Once the four years is up, the account will close and people will not be able to reopen it or open another Help to Save account.
Withdrawals from the account can only be made directly into one’s bank account.
Similarly, if one closes their account early they will miss out on their next bonus and will not be able to open another account.
People claiming any of the below could be eligible for the lucrative savings account:
- Working Tax Credit
- Child Tax Credit
- Universal Credit.
Additionally, they need to be living in the UK, unless they or their partner are crown servants or members of the British armed forces.
There are some additional requirements for each benefit being received.
People receiving Child Tax Credit must be entitled to, although don’t necessarily need to be claiming, Working Tax Credit.
Those on Universal Credit must have earned more than £658.64 from work in their last monthly assessment period.
If one has a joint claim with their partner then they must have earned £658.64 or more together.
Couples will need to apply for the Help to Save accounts separately.
If a person stops receiving benefits while their Help to Save account is still active they can continue using the savings account.