Martin Lewis issues major update over 'unbeatable' savings account with £1,200 bonus

Martin Lewis says savings account with £1,200 bonus is 'unbeatable'

31 Oct 2024, 12:56 by James Rodger, https://www.facebook.com/jamesrodgerjournalist · Birmingham Live

The Help to Save scheme has been extended and widened, the government has confirmed. The scheme offers lower earners a savings account where they can save a maximum of £50 a month for 4 years and receive a 50% government boost at the end of year 2 and year 4.

This helps workers kickstart a lifelong savings habit and offers up to £1,200 over the 4 years. The scheme was due to end in April 2025 but has been extended by 2 years until April 2027. Eligibility for the scheme will widen from April 2025.

It will be open to all working Universal Credit claimants earning at least £1 a month, the Labour Party has said. "It's an unbeatable form of savings, that can add serious cash with no risk,” Martin Lewis wrote on X, formerly known as Twitter.

The scheme allows people to save up to £50 per month over two years, and then receive a 50% bonus on the highest amount that was in the account over that period. Your Help to Save account will close 4 years after you open it. You will not be able to reopen it or open another Help to Save account. You’ll be able to keep the money from your account.

You can close your account at any time. If you close your account early you’ll miss your next bonus and you will not be able to open another one. You can earn 2 tax-free bonuses over 4 years. You’ll get any bonuses you’ve earned even if you withdraw money.

After your first 2 years, you’ll get a first bonus if you’ve been using your account to save. This bonus will be 50% of the highest balance you’ve saved. After 4 years, you’ll get a final bonus if you continue to save. If your highest balance does not increase, you will not earn a final bonus.

The most you can pay into your account each calendar month is £50, which is £2,400 over 4 years. The most you can earn from your savings in 4 years is £1,200 in bonus money. Your bonus is paid into your bank account, not your Help to Save account.