New parents get a savings bonus of up to £2400
The government has a help to save scheme specially designed for working families on a low income. Families on Universal Credit or Tax Credits can register for a ‘help to save’ account as long as they are in work and earning (as a household) more than £569.22 a month. Families with two adults can both register and save up to £50 a month. At the end of two years a 50% bonus is added to each registered account. This means a maximum bonus for a single account holder of £600 if they have saved £1200. For two account holders the maximum bonus is £1200. At the end of two years the account can be extended for a further two years and a second bonus paid at the end of that time.
This is a generous interest rate and a great savings opportunity for families who are getting Universal Credit for the first time while on maternity leave.
New parents, Bethany and Ollie qualified for Universal Credit while Bethany was on maternity leave. They both opened a ‘help to save’ account when Bethany was ready to return to work. They each started saving £50 a month. After 2 years of saving they could each get a maximum bonus of £600 (50% of their savings). When the first bonus is paid they can extend their ‘help to save’ accounts by a further 2 years and attract another 50% bonus allowing them to get a total bonus of £2400 from their ‘help to save ‘ accounts.
Apply for your Help To Save account.