SAVERS in the West Midlands can earn 50p for every £1 thanks to a new Governmant scheme open to working people on Tax Credits and Universal Credit.
From today (Wednesday) 349,142 hardworking people on low incomes in the West Midlands will benefit from the new Help to Save account that offers a 50 per cent bonus.
Four years maximum saving of £2,400 will earn the owner of the account a £1,200 bonus.
It follows an eight-month trial with more than 45,000 customers who deposited over £3 million.
It is easy to use, flexible and secure and will help those on low incomes build up a ‘rainy day’ fund, and encourage savings behaviours and habits.
How much is saved and when is up to the account holder and they do not need to pay in every month to get a bonus.
John Glen, Economic Secretary to the Treasury said: “Savings shouldn’t be a luxury, they are an essential part of planning for the future.
“But for some, putting away even a tenner each month can be a tough habit to get into.
“Whether you’re saving up to take the family on a much-needed holiday, or to take the next step in life, Help to Save is designed to make saving possible for every hardworking person in this country.”
Account holders can save between £1 and £50 every calendar month and accounts last for four years from the date the account is opened.
After two years, savers get a 50 per cent tax-free bonus on savings. If saving continues there is another 50 per cent tax-free bonus after four years.
On maximum savings of £2,400 over four years, the overall bonus would be £1,200.
To apply, savers can visit www.gov.uk/helptosave or use the HMRC app.