MARTIN Lewis has revealed how Brits can add “serious cash” to their savings.
The money saving expert has told how people on low income should check if they qualify for an extra £1,200 in free cash.
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The Help to Save account is used to boost your bank if you’re on Universal Credit.
Mr Lewis says “it’s an unbeatable form of savings, that can add serious cash with no risk.”
He explained: “In Help To Save if you’re eligible for it you can put up to £50 a month in over two years.
“At the end you get 50 per cent of the highest amount in. If you put £50 a month in that £600 a year.
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“You have a nightmare, your fridge is broken, you need it for the kids, you spend your £600 – you can’t afford to put anymore in.
“At the end of the two years the highest amount you had in was £600 – you get 50 per cent of that which is £300.
“So you get £300 and then whatever you’ve got in at that point they do it again for the next two years comparing what you have at the beginning to what they have at the end and you get a 50 per cent bonus.”
You can sign up if you’re on Universal Credit, Working Tax Credit or Child Tax Credit.
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The latest figures from HMRC reveal that nearly 450,000 people opened a Help to Save account between September 2018 and March 2023, totalling more than £370million in payments.
But with government data showing there are currently over six million on Universal Credit, that means there’s millions on the benefit missing out on the free cash.
It takes just minutes to sign up for an account and you can put as little as a pound in there to get started.
Plus, there’s no set amount you have to put away each month so it is well worth opening one if you’ve got some spare cash.
Who is eligible?
You can open a Help to Save account if you are receiving:
- Working Tax Credit
- Child Tax Credit – and are entitled to Working Tax Credit
- Universal Credit and you (with your partner if it’s a joint claim) had take home pay of £722.45 or more in your last monthly assessment period
Take home pay is the amount you receive after tax, insurance and other deductions are removed from your gross monthly salary.
If you are in a couple, you and your partner can apply for separate Help to Save accounts, but you will have to apply individually.
You will also need to be living in the UK to qualify for the scheme.
However, if you live overseas, you can apply for an account if you’re either a:
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- Crown servant or their spouse or civil partner
- member of the British armed forces or their spouse or civil partner
You can also carry on saving into a Help to Save account even if you come off benefits.
