UNIVERSAL CREDIT recipients may be able to get up to £1,200 as a boost to their savings through the Government’s Help to Save scheme.
The scheme has been specifically designed to help boost savings by 50 percent.
People who are entitled to Working Tax Credit or receiving Universal Credit can save between £1 and £50 each calendar month.
More specifically, they get a bonus of 50p for every £1 they save over four years.
They do not need to pay money in every month.
Money can be paid into a Help to Save account by debit card, standing order or bank transfer.
It is possible to pay in as many times as one wishes.
However, the most a person can pay in each calendar month is £50 (amounting to £2,400 over four years).
The most that can be earned from savings in four years through bonus money is £1,200.
For example, if a person has saved £50 by 8 March, they will not be able to pay in again until 1 April.
It is possible to get bonuses at the end of the second and fourth years.
These are based on how much a person has saved.
More specifically, a person can earn two tax-free bonuses during this time.
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They’ll get these bonuses even if they withdraw money.
The first bonus comes after the first two years.
This will be 50 percent of the highest balance that a person has saved.
After four years, they’ll receive a final bonus if they continue to save.
This bonus will be 50 percent of the difference between both the highest balance saved in the first two years and the highest balance saved in the last two years.
If a person’s highest balance does not increase, they will not earn a final bonus.
Importantly, the bonus is paid into a bank account – not a Help to Save account.
People can only withdraw money from a Help to Save account to their bank account.
Withdrawals can take up to three days and any money taken out will affect a person’s bonus payment.
This is because withdrawing money makes it harder to grow the highest balance and earn the largest possible bonuses.
Help to Save is a savings scheme for people on low incomes who are claiming certain benefits.