The Help to Save scheme was launched by the government in September 2018 to help those on low incomes to boost their savings. Under the scheme, those eligible could save between £1 and £50 every calendar month and receive a 50% government bonus. The 50% bonus is payable at the end of the second and fourth years and is based on how much account holders have saved. The bonus is paid directly into the account holder’s chosen bank account. The first bonus payment has already been paid out to those who opened accounts between September 2018 and February 2019.
The pandemic saw an increase in savers
New figures published by HMRC show that more than 42,000 new Help to Save accounts were created between August 2020 and January 2021. Almost 217,000 individuals have made a deposit to their Help to Save account. Of those depositing into their savings account, the average monthly deposit per person is £48, as of 31 January 2021.
Who is eligible?
Under the scheme, account holders on low incomes can receive a maximum bonus of up to £1,200 on savings of £2,400 for 4 years from the date the account is opened. The scheme is open to most working people who receive Working Tax Credits or Universal Credit. Eligible individuals can set up a Help to Save savings account at any time until September 2023.