A new Government-backed savings account to support working people on low incomes become regular savers has been welcomed by NE Beds MP Alistair Burt.
Help to Save offers a tax-free Government bonus of 50p for every £1 saved. How much is saved, and when, is up to the account holder and they do not need to pay in every month to get a bonus. It is available to working people on tax credits and Universal Credit and savers can pay in from £1-£50 each month.
“I appreciate how important it is for us all to plan and prepare for the future. There can often be unexpected costs to meet, changes to income or simply the need for a holiday or short break. Help to Save encourages a saving ‘habit’, enabling individuals and families to save flexibly”.
Accounts last for 4 years from the date the account is opened and, after 2 years, savers get a 50% tax-free bonus on savings. If saving continues, there is another 50% tax-free bonus after 4 years.
The scheme allows savers to withdraw their money at any time and is backed by the Government, ensuring the money saved is secure. More information can be found here: https://www.gov.uk/get-help-savings-low-income