A £1,200 bonus is being offered by HMRC for thousands claiming Universal Credit or Tax Credit.
The Government Help to Save scheme helps low-income earners by offering a 50% bonus payment on their savings, with a maximum of £1,200.
The scheme means that if you save between £1 and £50 a month, for every £1 you deposit, you get 50pm back, seeing a 50% return on your money, according to The Mirror.
Help to Save accounts last four years with bonuses paid during the second and fourth years of the account being opened.
There is a maximum £50 cap on how much you can save each month, meaning users will save £2,400 across four years, seeing a £1,200 bonus from the Government.
But you don’t have to save the higher amount each month, as you can save less but it will mean that your bonus will be lower.
Who can open a Help to Save account?
If you meet the following requirements, you can open a Help to Save account:
- Universal Credit if you had take-home pay of £722.45 or more in your last monthly assessment
- Working Tax Credit
- Child Tax Credit if you’re entitled to Working Tax Credit
How to open a Help to Save account
If you meet the requirements for a Help to Save account, you can access the application form via the Government website.
You can also call on 0300 322 7093.
Couples have the choice to open joint accounts or separate if they receive payments as a pair.
However, if you have savings in other accounts with a Help to Save account, it could result in your benefits being reduced if you go over the threshold.
Such as, if you claim Universal Credit and as a couple have savings of £6,000 your benefits could be reduced.
But, it is important to note that savings or bonuses you make through Help to Save do not affect your Working Tax Credit.
