The government ‘Help to Save’ scheme has today been extended for the public up until April 2025.
‘Help to Save’ was first introduced in September 2018 to benefit low-income earners, before being extended in March this year when it had been due to end in September 2023.
Considering that more than 350,000 people have already benefited from it, an additional three million people are predicted to join up for it. It is designed to help those with low incomes save money, which the government then boosts.
The scheme allows people to deposit between £1 and £50 into their accounts, and the programme will send them a 50% bonus payment worth up to £1,200 over four years, even if money has already been withdrawn.
In other words, if someone saved £2,400 over four years (the maximum amount available), they would get a £1,200 bonus from the government put into their bank account.
Individuals may deposit funds into their accounts as often as they like using a debit card, a bank transfer, or a standing order as long as they don’t go over the £50 monthly saving cap. Accounts may only be open for a maximum of four years. People can withdraw money at any time, although doing so might reduce their 50% bonus pay-outs.
Martin Lewis expressed his keenness for the scheme.
There is nothing comparable to it; it is the best possible savings account.You may add up to 50 pounds per month, spread out over two years.On the amount you have contributed over the course of two years, you receive a 50% bonus.
You deposit 50 pounds each month for a year, amassing a total of £600, which you must use when your boiler breaks down.
At the end of the four years, the most you had was £600; the government will give you a bonus bonus of £300 for free.
When applying, people who are receiving one of the following benefits may open a ‘Help to Save’ account:
Credit for Working Taxes.
They are eligible for Working Tax Credit, Universal Credit, and Child Tax Credit, and they (together with their partner, if it is a joint claim) and had a take-home pay of £722.45 or more during their most recent assessment period.
This is how the bonuses are paid out:
Customers will receive a first incentive if they have been utilising their account to save after the first two years. The bonus will be equal to 50% of the highest saved balance.
They will receive a final incentive if they continue to save after 4 years. The highest balance saved in the first two years (years 1 and 2) will be divided by the highest balance saved in the last two years (years 3 and 4), for a bonus that will be equal to 50% of the difference between the two sums. They won’t receive a final bonus if their top balance doesn’t go up. Instead of their Help to Save account, the bonus is sent into their bank account.
With the highest rated savings account out there, I would utilise this tool to save yourself money in the long term.