Government figures show more than 80,000 people have already signed up to the Help to Save scheme [January 2019].
It is a new type of savings account aimed at helping low earners. So far, they have collectively deposited more than 10 million.
You can find the new Help to Save tool in the HMRC app. It lets savers set their own savings goals and receive personal reminders.
So, downloading the app will help you keep a track of your savings and give you an opportunity to maximise the bonuses.
The special savings account works by offering working people on lower incomes a 50% bonus. The Help to Save scheme rewards savers with an extra 50 pence for every £1 they save.
Note: A maximum saving of £2,400 would result in an overall bonus of £1,200 over a four (4) year period.
The Way ‘Help to Save’ Works
The UK Government have made the HM Revenue and Customs Help to Save app super easy to use. It is flexible and very secure.
The primary aim is to help individuals who get lower incomes build up a ‘rainy day’ fund. The scheme’s bonuses may encourage frugal savings behaviours and provident saving habits.
The account holder chooses how much to save and when to save it. And, there is no need to pay in a set amount every month to get a bonus.
The Economic Secretary to the Treasury:
- The beginning of a new year is always a good time to get into the habit of saving money. Putting money into the Help to Save plan will reap a massive 50% boost from the government.
- It doesn’t matter whether you are putting money away for a rainy day or saving for a family break. Help to Save sets out to make saving as simple as possible for low earners.
- The new version of the app can be personalised to help savers make the most of the bonuses.
Note: You would need to be in work and meet the other Help to Save eligibility criteria to open an account.
As an account holder, you would be able to save between £1 and £50 every calendar month. The accounts last for a total of four (4) years from the date of opening the account.
Savers would get a 50% tax-free bonus on the highest balance after two (2) years. Continuing to save means you would get another 50% tax-free bonus after a further two years.
Thus, the overall bonus would be £1,200 on maximum savings of £2,400 over the four year period.
Using the New Help to Save App by HMRC
1. Getting Started with the HMRC App
Download the free HMRC app so you can set up and access your Help to Save account:
2. Signing in to the App
You need a Government Gateway user ID and password to sign in for the first time. You will be able to create one when you register as an individual if you do not have a user ID.
After setting up the app, the type of software your handset supports determines how you sign, such as:
- A 6-digit PIN
- Fingerprint authentication
- Facial recognition
3. Sign in to Your Help to Save Account
The Help to Save service is government-backed and a savings scheme only for certain individuals on a low income. Having a Help to Save account means you can use the app to:
- Check your Help to Save account balance and bonus.
- Track how much money you paid in each month.
- View how much money you can still pay in before the end of each calendar month.
- Set up regular reminders or prompts to add to your savings.
- View all your payments and withdrawals.
Note: Learn more about the HMRC savings account for low income earners in the job seekers section (JSA).