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Martin Lewis explains how millions of people could get £1,200 free on Universal Credit

MoneySavingExpert Martin Lewis tagged the Help to Save account in a tweet posted to his 1.5 million Twitter followers. Help to Save is a type of savings account for low-income workers

Martin Lewis explains how the Save Help scheme works
Martin Lewis explains how the Save Help scheme works

Martin Lewis has explained how beneficiaries can get a bonus of up to £1,200 on their savings via a special account.

The MoneySavingExpert tagged the Help to Save account in a tweet posted to its 1.5 million Twitter followers.

Help to Save is a type of savings account available to low-income workers who apply for Universal Credit or Working Tax Credit.

It’s run by the government and offers a 50p bonus for every £1 saved – meaning you get a 50% return on your money.

This account has a term of four years and you can deposit a maximum of £50 per month.

If you save a maximum of £50 each month over the four years you can have the account, you could end up with a £1,200 bonus.

You can save less and still get a bonus even though it’s a smaller amount. For example, if you save £25 a month over two years, you’ll get £600 back.

Have you ever used the help to save an account? Let us know what you think: mirror.money.saving@mirror.co.uk

In a tweet published last night, Martin said: “Are you or anyone you know regarding Universal Credits or other benefits? See help on saving.

“You can deposit up to £50/month and get a 50% bonus on most of what you had there after 2 years (even if you took it all out). Unbeatable!”

How to open a Help to Save account

You can apply for a Help to Save account through the gov.uk Website.

For those who don’t have access to the internet, you can still get an account on 0300 322 7093.

You might be eligible for a Help to Save account if you live in the UK and:

  • Receive an employment tax credit

  • Eligible for labor tax credit and receive child tax credit

  • Claim Universal Credit and you (with your partner if it’s a joint claim) have earned £604.56 or more from paid work in your most recent monthly assessment period

You and your partner can both open separate Help to Save accounts, but you must both apply individually.

But depending on how much money you’ve already saved elsewhere, any money invested in a Help to Save account could potentially affect your benefits.

You and your partner must have less than £6,000 in personal savings to ensure your Universal Credit and Housing Benefit payments are not cut.

This includes any savings in your Help to Buy account, but not your bonuses.

Any savings or rewards you earn through Help to Save will not affect how much Working Tax Credit you receive.

The bonus payments are made after two years and at the end of four years, the money earned is tax-free.

How is Help to Save different from other savings accounts?

Martin described the Help to Save account as “unbeatable” when compared to other savings accounts.

If you’re eligible for Savings Help, you’ll get 50% interest back on your money, up to the limits above.

Elsewhere, the current highest paying easy access account is Virgin Money, which pays 1.56% on deposits up to £25,000.

You get a higher return on your money when you can afford to lock up your cash for a period of time.

Currently the highest paying termination savings account is from DF Capital at 1.7% and a notice period of 120 days.

The best one-year fixed-rate account pays 2.4% and comes from Investec, while a five-year fixed-rate account from PCF Bank offers an interest rate of 2.9%.

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https://www.mirror.co.uk/money/martin-lewis-explains-how-millions-27164932 Martin Lewis explains how millions of people could get £1,200 free on Universal Credit

Fry Electronics Team

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