In the midst of the cost-of-living crisis, saving money appears to be beyond most, but the federal government has a program offering eligible people some return on their savings, even when there’s not much to lose.
UK government Help save the account will provide eligible individuals with financial assistance of £1,200 from the UK government with a special savings account. The government will double any savings you place away over 4 years – so for each £1 you save, the federal government will add 50p to your account.
If you reside within the UK and are claiming Workers’ Tax Credit or Child Tax Credit (and are eligible for Working Tax Credit) you have to be eligible for the scheme, or should you are claiming Universal Credit (should you and your partner) – pay at home over £658.64.
You can deposit as much as £50 into your Help to Save account every month, although please note that you just do NOT HAVE to deposit money into your account every month; you’ll then receive 50p from the federal government for each pound you place in.
You will too receive two tax-free bonuses, after two years, and again after 4 years, which can be higher or lower depending on how much you’ve saved. Your bonus after two years can be 50 percent of the best balance you have saved thus far, and after 4 years your bonus can be 50 percent of the difference between the best balance you have saved in the primary two years and the best balance you have saved within the last two years.
You will even receive any bonuses you’ve earned, even should you needed to withdraw money out of your account. The maximum amount you’ll be able to deposit into your account every month is £50 or £2,400 over 4 years. So essentially the most you’ll be able to earn over 4 years is a £1,200 bonus. Your bonus is deposited into your checking account, not your Help to Save account.
After 4 years, your Help to Save account can be closed and you may not find a way to reopen it or open one other Help to Save account, but you’ll keep any money in your account. You can proceed to make use of your Help to Save account even should you stop claiming advantages, so long as you meet the eligibility criteria once you open your account.
If you receive payments as a pair, you and your partner can apply for your personal Help to Save accounts. You must submit a separate application.
You must also live within the UK. If you reside abroad, you’ll be able to apply for an account if:
- Crown servant or their spouse or civil partner.
- A member of the British Armed Forces or their spouse or civil partner.
Further reading.
All the things you’ll be able to get government support for.
25 financial changes for 2023
