From this week, workers are set to benefit from the Government’s new Help to Save scheme, which rewards savers with an extra 50p for every £1 saved.
The launch of the scheme follows a successful eight-month trial, in which 45,000 workers saved over £3 million.
The scheme is open to UK residents who are entitled to Working Tax Credit or Child Tax Credit payments, as well as those claiming Universal Credit who have a household or individual income of at least £542.88 for their last monthly assessment period.
Savers can deposit a maximum of £2,400 over a four year period, resulting in a maximum bonus of £1,200.
The benefits of saving into the account include choosing when and how much you should deposit into the Help to Save account (from £1 to £50 a month). Likewise, the funds can be withdrawn after just two years, although withdrawing early could affect the size of your bonus.
Workers interested in opening a Help to Save account can do so between 12 September 2018 and September 2023, using the Government’s digital platform or HMRC app.
Commenting on the announcement, John Glen, Economic Secretary to the Treasury, said: “Savings shouldn’t be a luxury, they are an essential part of planning for the future. But for some, putting away even a tenner each month can be a tough habit to get into.
“Whether you’re saving up to take the family on a much-needed holiday, or to take the next step in life, Help to Save is designed to make saving possible for every hardworking person in this country.”