Savings update as Britons could secure extra £1,200 in ‘unbeatable’ account

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The Help to Save account is considered one of the best to help people who may have struggled to save in the past. It allows certain individuals to get a bonus of 50 pence for every £1 they save over a four year period.

The account is also backed by the Government, meaning any money a person saves is secure.

Help to Save is designed to work in a simple and straightforward way for users.

Individuals can save between £1 and £50 each calendar month into the account, but do not have to pay money in every month.

Subsequently, people will receive a bonus at the end of their second and fourth year of saving.

These bonuses are based on how much a person has decided to put away, and are tax-free.

After the first two years, savers get a bonus if they have been using the account, worth 50 percent of the highest balance they have saved.

If continuing to the fourth year, another bonus can be secured by savers.

This bonus is 50 percent of the difference between the two following amounts:

  • the highest balance saved in the first two years (years one and two)
  • the highest balance saved in the last two years (years three and four)

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As a result, if a person’s highest balance does not increase, they will not earn a final bonus. 

To be eligible for this account, a person must meet certain criteria laid out by the Government.

The account can be opened if a person is any of the following:

  • Someone receiving Working Tax Credit
  • Someone entitled to Working Tax Credit and receiving Child Tax Credit
  • Someone claiming Universal Credit who earned £658.64 or more from paid work in their last monthly assessment

If people get payments as a couple, they and their partner can apply for their own Help to Save accounts.

They will, however, need to apply separately.

People must also live in the UK to be eligible for a Help to Save account in most circumstances.

If for any reason a person stops claiming benefits, then they can continue to use their Help to Save account.

The most a person will be able to pay into their account each calendar month is £50, which is £2,400 over four years.

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This means savers could get a bonus of up to £1,200 tax-free across four years.

Recently, the team at Money Saving Expert, devised by Martin Lewis, lauded the option.

In a newsletter they said: “For those who qualify, Help to Save is unbeatable.

“It adds a 50 percent bonus on the highest amount of savings you have in it over two years.

“Many who are eligible rave about it.”

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