Low-income Britons may be eligible for a bonus of over £1,000 delivered directly into their bank account.
UNIVERSAL CREDIT recipients and Working Tax Credit recipients may be eligible for a tax-free bank account boost of more than £1,000 over time.
This is done through the government-backed Help to Save program. For every £1 saved over the course of four years, those who join a Help to Save account will receive a bonus of 50 pence.
It’s a program designed to help low-income people save money, and it’s available to certain people who are eligible for Working Tax Credit or Universal Credit.
What is the Help to Save scheme and how does it work?
Each calendar month, you can deposit between £1 and £50 into the account.
That isn’t to indicate that money must be deposited into the account on a monthly basis.
A user can make as many deposits as they like into the account, as long as they don’t over the £50 limit every calendar month.
Bonuses are awarded at the end of the second and fourth years, rather than immediately.
However, not everyone will receive the same amount; it is determined by how much money has been saved.
Bonuses are tax-free and can be received even if funds are taken out of the account during the four-year period.
If the account has been used to save for the first two years, the first bonus will be awarded.
This will be equal to half of the account’s highest saved balance.
Given the monthly restriction, the most that can be saved over two years is £1,200, resulting in a maximum tax-free incentive of £600.
After four years, those who have maintained their savings will be eligible for a final incentive.
The incentive will be 50% of the difference between two amounts this time:
There will be no final bonus if the highest balance does not improve throughout this time.
A total of £2,400 might have been paid in over the course of four years.
When the statistics are crunched, the most that can be made from savings in this account over four years is £1,200 in bonus money.
Instead of being deposited into a Help to Save account, this money is deposited into the person’s bank account.
Those who require cash can do it during this four-year period, but they should be mindful that growing the largest balance will be more difficult. “Brinkwire News in Condensed Form.”