Millions of Britons could get over £1,000 paid into their bank account – are you eligible?
Help to Save is a Government-backed savings scheme for low income households, providing savers with two tax-free bonuses regardless of how much they withdraw. Those who believe they are eligible are urged to apply for the savings scheme on the Gov.uk website.
However, closing an account will mean they will not be able to reopen it or another Help to Save account.
Accounts can also be closed by savers at any time and they can keep the account even if they stop receiving the benefits that made them eligible for it.
The tax-free bonuses are paid at the end of the second and fourth years based on how much one has saved.
At the two year mark, the first bonus will be paid into the Help to Save account, which will roughly be 50 percent of the highest balance saved.
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This repeats at the fourth year wherein savers will receive 50 percent of the difference between:
- The highest balance saved in the first two years
- The highest balance saved in the last two years
In practical terms, if savers are able to put away the maximum each month of £50, they will have saved £2,400 over the four years purely by saving.
But, they will also have earned a maximum of £1,200 in completely tax-free bonus money.
Both bonuses are paid out regardless of how much one withdraws during the time the account is open.
However, if one’s highest balance hasn’t increased between the second and fourth year they will not earn a final bonus.
Eligible claimants who are living overseas can apply for an account if they are:
- Crown servant or their spouse is
- Member of the British armed forces or their spouse is
It’s also important to note that saving money through Help to Save could affect one’s eligibility for other benefits and how much they receive.
For those on Universal Credit or House Benefit, having personal savings in excess of £6,000 will affect their payments, although Help to Save bonuses should not be included in this calculation.
To apply, eligible claimants must use the Government Gateway on the Gov.uk website and be able to provide UK banking details.
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