Millions of low-income people are missing out on savings plans that can double their cash.
Savings Assistance Scheme earns youa 50% bonus from the government
Set aside the maximum you can earn for 4 years £1,200 bonus at.
However, millions of people may be unaware that an account exists or that they are eligible for one.
Tom Selby, AJ Bell's head of retirement policy, said he only 2.5% of those eligible for Help to Save are enrolled.
This accounts for his massive 5.6 million users who take advantage of perks such asuniversal credits. Despite that.
Here's everything you need to know about Help to Save:
What is Help to Save?
Help to Save is a government-backed scheme aimed at helpinglow-income people start saving
£1 set We offer a bonus of 50 pence per month.As an aside, you can save up to £50 per month.
Since the program launched in 2018, approximately 359,000 Help to Save accounts have been opened, of which over 48,000 have not been paid.
Around 143,000 people deposit up to £50 into their accounts each month.
Tom said: "These people plan to set aside £1,200 in savings. That money could be an emergency fund and a stepping stone to saving and further investment in the future.
" But these figures show thata small fraction of low-income households are taking full advantage of this generous scheme.”
Eligible People.
To be eligible To get a Help to Save account, you must meet one of the following criteria. Eligible for the Child Tax Credit
account is one per person, not one per household. Therefore, if both you and your partner are eligible, you can each open separate accounts.
You must live in the UK to be eligible. ng benefits can still be used on your account.
Tom said: “The program is not well publicized, so many people don't know that they are being rewarded even if they can put a little bit each month.
”This is because Combined with the fact that many people who qualify for the scheme don't have spare money to store each month.You can then save up to £50 a month and receive a 50% bonus on your savings. .
Bonus he will be paid after 2 years and again after 4 years.
That means that if he saves the maximum amount every month for 4 years, he can pocket a bonus of up to £1,200.
The saver receives a bonus of 50% of her highest balance achieved in her first two years. - So if you need to withdraw some money from your account, you won't be penalized. A £600 bonus.
And if he could do the same for t next year he would do the same for 2 years and for 4 years his bonus today would be £1,200 and he would save £2,400 in total He will be 3,600 pounds.
Other considerations.
Of course, it's not for everyone. With the cost of living at stake, many cannot afford to save cash. This account is perfect for those who can set aside some money each month.
But you don't have to commit to a fixed amount, so if you qualify, it's worth opening an account - whenever you can, you can save £1 or 2 and still get £50 You can get a % bonus on what you save.
Tom said:
Please also note that if personal savings exceed her £6,000, this may affect eligibility for some benefits.
Apply for an account through the government website - government gateway user ID and password required. Alternatively, you can apply by calling 0300 322 7093.
How does it compare to other savings accounts?
Help to Save is arguably the most generous savings account with an unrivaled 50% bonus.
It has the added benefit of easy access. This means you can access your money whenever you want and never lose your bonus.
Tom said: “The flexibility of the scheme is one of the great benefits, as savers can withdraw their money whenever they want and receive a bonus equal to half of their top balance.
” This means that you will not be penalized if you need to withdraw cash.”
By contrast, the best easily accessible savings accounts on the market currently offer 1.81%.
Lifetime Isas is another government-backed alternative and arguably more popular.
These will save you up to £4,000 a yearReceive a 25% bonus When you buy your first home or spend money in retirement
These accounts don't come with big bonuses, but they let you save more money - and can be opened by anyone between the ages of 18 and 39. You don't have to be on benefits to be eligible.