Money Saving Expert Martin Lewis has urged millions of people in the UK to check if they can get £1,200 payment from a little-known bank account. According to Martin, the account is 'unbeatable'.
But if you want to open one, you'll have to fit the criteria. You'll need to be on Universal Credit or benefits, and have less than £6,000 saved.
Help to Save is a type of savings account available to low income workers claiming Universal Credit or Working Tax Credit. It is run by the Government and offers a bonus of 50p for every £1 you save - this means you're getting a 50% return on your money.
READ MORE: Zara employees explain why shoppers should look for circles and triangles on clothes tags
This account lasts four years and you can pay in a maximum of £50 a month. If you save in the maximum £50 each month for the four years you can have the account, you could end up with a bonus of £1,200, says the Mirror.
You can save less and still get a bonus, although it will be a lower amount - for example, save £25 a month over two years and you'd get £600 back. In a tweet published last night, Martin said: “Are you, or someone you know on Universal Credits or other benefits? Do look at Help To Save.
“You can put up to £50/mth in, then after 2yrs get a 50% bonus on the most you had in there (even if you've taken 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 by calling 0300 322 7093.
You could be eligible for a Help to Save account if you live in the UK and:
-
Receive Working Tax Credit
-
Are entitled to Working Tax Credit and receive Child Tax Credit
-
Claim Universal Credit and you (with your partner if it’s a joint claim) earned £604.56 or more from paid work in your last monthly assessment period
You and your partner can both open separate Help to Save accounts, but you'll both need to apply individually. But depending on much money you already have saved elsewhere, any cash put aside 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 make sure your Universal Credit and Housing Benefit payments aren't reduced. This includes any savings in your Help to Buy account, but not your bonuses.
Any savings or bonuses you earn through Help to Save will not affect how much Working Tax Credit you get. The bonus payments are made after two years and at the end of four years, and the money you earn is not subject to tax.
How does Help to Save compare to other savings accounts?
Martin described the Help to Save account as “unbeatable” compared to other savings accounts. If you're eligible for Help to Save, you're getting 50% interest back on your cash, up to the limits mentioned above. Elsewhere, the top paying easy-access account right now is from Virgin Money, paying 1.56% on deposits up to £25,000.
You'll get a higher return on your money if you can afford to lock your cash away for a period of time. The best-paying notice savings account right now is from DF Capital, paying 1.7% and with a withdrawal notice period of 120 days. The top one-year fixed account pays 2.4% and is from Investec, while a five-year fix from PCF Bank offers a 2.9% interest rate.
