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10 Chartered Accountants

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Government backed tax-free savings plan to help savers earn 50p on every £1
11 October 2018

The Government has launched a new savings account that offers savers a 50 per cent tax-free bonus on the money they deposit.

The new Help to Save account will offer savers up to 50p for every £1 that they save, which could mean that people could benefit from as much as £1,200 of tax-free money if they save £2,400 over the four years of saving permitted.

Under the rules of the scheme, savers can put away between £1 and £50 every calendar month for up to four years after the date the account is set up. However, they do not have to make deposits every month to benefit from the bonus.

They can then receive a 50 per cent tax-free bonus on their savings after two years, with an additional 50 per cent tax-free bonus after four years.

The account has already been trialled for eight months amongst 45,000 customers who deposited over £3 million.

The Government describes the new account as “easy to use, flexible and secure” and believes it will “encourage savings behaviours and habits” at a time when saving is at an all-time low.

Help to Save will only be available to working people in receipt of Tax Credits or Universal Credit.

Link: Help to Save

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