The particular savings account in question is widely known as Savings Assistance, which helps people on benefits start saving. Specifically, the account allows those eligible for Working Tax Credit or Universal Credit to earn a 50p bonus for every pound saved over four years. Unlike other savings accounts, Help to Save is government backed, which means all money is safe.
To apply for this account, savers must have their Government Gateway username and password and log in to their account.
If they don’t have a user ID, they can create one when applying through the government website.
When finalizing the application process, savers will be required to share their bank details.
Recipients of Universal Credit and In-Work Tax Credit can save between £1 and £50 each calendar month through savings assistance.
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However, no one who receives these benefits is obligated to deposit money into the account every month.
They can deposit money into their Help Savings account by debit card, wire transfer, or wire transfer.
Savers can also pay as many times as you like, but it should be noted that the maximum one person can pay each calendar month is £50.
A hypothetical scenario quoted on the government’s website states: “For example, if you’ve saved £50 by January 8, you won’t be able to pay until February 1.”
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After the end of the four years, the same applicant obtains a final bonus if he continues to save, which will be 50% of the difference between two amounts.
An example on the government’s website shows how the bonus could work for in-work tax credit or universal credit recipients.
On the government website it says: “You pay £25 per calendar month for two years. You do not withdraw any money. Your highest balance will be £600. Your first bonus is £300, or 50% of £600.
“In the third and fourth years, you save an additional £200 to raise your highest balance from £600 to £800.
“Your final bonus is £100, which is 50% of £200. Even if you have withdrawn money after your balance has reached £800, this does not affect your bonus.
However, anyone interested in the Savings Aid account should be aware that it closes four years after it was opened.
This means that savers will no longer be able to reopen it or open another Government Savings Assistance account.
Despite this, savers will be able to keep the money they have saved in their account.
Many savers choose to close their account, which can be done at any time.
However, if someone closes their Savings Aid early, they risk missing their next bonus and won’t be able to open another one.
