Starting or rebuilding a savings fund can be difficult, but choosing the appropriate account can help make savings easier. For individuals who are fortunate enough to have £1,000 to deposit, we have highlighted some of the best accounts in which to do so.
Definition of Help-To-Save
Help to Save is a government-sponsored savings programme that allows individuals to earn a 50 penny bonus for every £1 saved over a four-year period. The 50% bonus is paid at the conclusion of the second and fourth years and is dependent on the amount of money saved by account holders.
HMRC report on Help-To-Save account
According to HM Revenue and Customs (HMRC), over 264,000 people have registered a Help to Save account and could be earning money on their savings. Account-holders have the option of saving up to £50 each month. They may save £2,400 and earn £1,200 in bonus payments if they save the maximum amount each month for four years.
Over 42,000 new Help to Save accounts were opened between August 2020 and January 2021. Individuals can examine the Help to Save qualifying criteria and apply online at GOV.UK.
Almost 217,000 people have deposited money into their Help to Save accounts. On January 31, 2021, the average monthly deposit into a savings account was £48 per person. Deposits to the plan totalled more than £40 million during the six-month period from August 2020 to January 2021. This is the most money saved in a six-month period since the scheme's inception in September 2018.
Angela MacDonald, HMRC's Deputy Chief Executive, stated: “The Help to Save scheme has helped more than 264,000 individuals open a savings account...”
Can I open a Help-To-Save account?
Individuals can open a Help to Save account if they meet any of the criteria listed below. They are as follows:
- Getting a Working Tax Credit;
- Working Tax Credit and Child Tax Credit are both available to you;
- Claiming Universal Credit and earning £604.56 or more from paid work in their latest monthly assessment period (with their partner, if it's a joint claim).
How can I sign up for a Help to Save account?
You can apply through Help to Save on Gov.uk (you'll need to sign in with the same data you use for your personal tax credits account). Alternatively, if you have the HM Revenue & Customs (HMRC) app, you can use it.
You have till September 2023 to open an account. You can keep it for up to four years after it's been opened.
You can fund your Help to Save account using a debit card, a standing order, or a bank transfer, and you can make as many contributions as you want each month as long as you don't pay in more than £50 in a month.
Individuals who are eligible can open a Help to Save savings account at any time until September 2023. Individuals can register accounts for four years and make deposits as many times as they want without exceeding the monthly saving limit of £50. Individuals can also withdraw funds at any time, though this may have an impact on their 50% bonus payments. The first bonus payment has already been made to thousands of people who created accounts between September 12, 2018, and February 14, 2019.
Persona Finance [enquiries@personafinance.co.uk] can provide accounting and business guidance.
