You might have heard of the Help To Save scheme spoken about in the news or on TV programs like The Martin Lewis Show. For those who can apply for it, there is no other savings scheme quite like it. How would you like to save some money over four years and get a 50% bonus? If you’re eligible, this is exactly what Help To Save can do for you.
What Is Help To Save?
If you are on Universal Credit or receiving Working Tax Credit, you should be eligible to join. It’s a savings scheme where, over four years, you can put up to £50 a month away. On this money, you will receive a 50% bonus, paid after the first two years and again at the end of the four years.
How Much Can You Save?
You can save up to £50 a month. Once a month has passed, you’ve lost that month so you can’t go back and put more in, if you forgot. Of course, not everyone on a low income and the benefits the scheme is aimed at, can afford to put £50 a month away. Putting £20 a month away would give you a £10 bonus. So when you look at it like that, it’s worth figuring out a way to save as much as possible.
How Much Can You Earn?
The Help To Save scheme runs over four years for those eligible. That is 48 months of saving a maximum of £50 a month. Those maximum savings add up to £2400. A 50% bonus on top of that means you’d actually receive, by the time your Help To Save scheme ends after four years, £3600. Consider if there are two of you in the family who can apply. That’s £7200 you could save over four years. There is no other savings account out there which will give you 50% on top of what you save. Don’t forget, it is government backed and all your savings are secure.
It’s worth noting that your bonuses are based on the maximum amount that you’ve saved during that first two years and then in the following two years. That means, if you save for a year and a half, putting £50 away every month, but then you need to take money out of the savings account to pay for an emergency or unexpected bill, your first bonus will be based on the maximum amount of money you had in the account. So even though you’ve withdrawn, you’ll still be able to get the bonus. With that in mind, if you do need to withdraw, double check you’ve put this months full £50 payment in before you withdraw. That means you’ll get an extra £25 bonus!
What’s The Best Way To Do It?
I found that the best way to do it is to to create a standing order. 48 payments, on the same day every month. When you create your Help To Save account you’ll find ways that you can set up regular payments and I found this much easier. It’s then forgotten about then and there is no extra work to do. You can pay by debit card every month but that adds hassle and stress. Automatic payments are you friend here and it could be a great way to save money for many different parts of life. To help save for a house deposit, to do up the kitchen, to pay for a once in a lifetime holiday or maybe to put away as something for your kids or later on in your own life.
Find out today if you’re eligible to sign up for the Help To Save scheme and take full advantage of those maximum payments over the next four years. You’ll be so glad you did!
