A fan of Martin Lewis has explained how they saved an extra £575 thanks to an “unbeatable” savings account.
Help to Save was launched by the Government for low income workers claiming Universal Credit or Working Tax Credit. Help to Save was launched by the Government for low income workers claiming Universal Credit or Working Tax Credit.
It offers a bonus of 50p for every £1 you save, and you can pay in a maximum of £50 a month over four years.
If you save in the maximum £50 each month for the four years you can have the account, you could end up with a bonus of £1,200.
You can save less and still get a bonus, although it will be a lower amount.
Do you have a Help to Save account? Tell us your experience: mirror.money.saving@mirror.co.uk
MoneySavingExpert reader Charlotte said she saved up an extra £575 through Help to Save.
Writing in to MSE, she said: "I saw one of your shows a while back where you told us about the Government's Help to Save scheme.
“I set it up and have been paying in the max £50/month and have just received my £575 bonus. Thanks."
Martin Lewis previously described the Help to Save account as “unbeatable” compared to other savings accounts.
You get a 50% return on your savings - and to put that in comparison, the top-paying easy access account right now from Virgin Money pays 1.71%.
This is painfully below the level of inflation, which currently sits at a 40-year high of 9.4%.
How to open a Help to Save account
If you’re looking to open a Help to Save account, you’ll need to do it through the Gov.uk website.
You can also open an account by calling 0300 322 7093.
You could be eligible for a Help to Save account if you live in the UK and:
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Receive Working Tax Credit
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Are entitled to Working Tax Credit and receive Child Tax Credit
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Claim Universal Credit and you (with your partner if it’s a joint claim) earned £604.56 or more from paid work in your last monthly assessment period
If you’re in a relationship, you and your partner can both open separate Help to Save accounts.
You also need to make sure any money you have saved up doesn’t affect your benefits.
If you have more than £6,000 in savings, you may find your Universal Credit and Housing Benefit payments get reduced.
This can include any savings in your Help to Buy account, but not your bonuses.
Any savings or bonuses you earn through Help to Save will not affect how much Working Tax Credit you get.
The bonus payments are made after two years and at the end of four years, and the money you earn is not subject to tax.
