HMRC has developed a new app tool which lets savers set their own savings goals and personal reminders, to keep on track and maximise bonuses. To date more than 8,063 people in London have signed up to the government’s new saving account depositing over £876,023.52.
The account offers working people on lower incomes a 50 per cent bonus, with Help to Save rewarding savers with an extra 50p for every £1 saved. Over a four-year period, the maximum saving of £2,400 would result in an overall bonus of £1,200.
Help to Save is easy to use, flexible and secure, and will help those on lower incomes build up a ‘rainy day’ fund and encourage savings behaviours and habits. How much is saved and when is up to the account holder, and they don’t need to pay in every month to get a bonus.
Economic secretary to the Treasury, John Glen said, “The new year is a good time to start getting into the habit of saving, and with Help to Save you’ll get a massive 50% boost from the government.
“Whether you are saving for a family break, putting money away for a rainy day, or even saving for next Christmas, Help to Save is designed to make saving as simple as possible. And with the new version of the app, which can be personalised to help you make the most of your bonus, it’s easier than ever.”
Help to Save is available to working people on Tax Credits and Universal Credit.
Account holders can save between £1 and £50 every calendar month, accounts last for four years from the date the account is opened. After two years, savers get a 50 per cent tax-free bonus on the highest balance they’ve achieved. If they continue saving, they could receive another 50 per cent tax-free bonus after a further two years.
HMRC said that a maximum savings of £2,400 over four years, the overall bonus would be £1,200.