Individuals deposit £13m in Help to Save accounts
Over 90,000 low income earners have signed up to the government’s new saving account, Help to Save, depositing over £13m
28 Feb 2019
The account offers working people on low incomes a 50% bonus, rewarding savers with 50p for every £1 saved.
Over four years, a maximum bonus of £1,200 is available on savings of up to £2,400. Over 250 people each day are taking up the offer and individuals are making the most of its maximum £50-a-month deposit, saving on average around £47 each month.
Help to Save is aimed at those on lower incomes to help them build up a ‘rainy day’ fund, and encourages a long-term savings habit. It is up to the individual to decide how much to save and they do not need to pay in every month in order to receive a bonus.
John Glen, economic secretary to the Treasury, said: ‘Savings are an essential part of planning for the future, so it is good to see thousands of people getting into the habit with Help to Save. Anyone who is eligible should take a look and sign up. It is flexible, secure and easy to use.
‘Even if you can only save a small amount each month, it will help you prepare for whatever the future brings, and you’ll get a 50% boost on your savings from the government, too.’
The Help to Save account is available to working people on tax credits, or universal credit claimants with a minimum earned income equivalent to 16 hours per week at the national living wage in their last assessment period.
Account holders can save between £1 and £50 every calendar month and accounts last for four years from the date the account is opened. After two years, savers get a 50% tax-free bonus on the highest balance they have achieved. If they continue saving, they could receive another 50% tax-free bonus after a further two years. On maximum savings of £2,400 over four years, the overall bonus would be £1,200.
Report by Amy Austin