More than 60,000 savers have earned their first Help to Save bonus payment, receiving an average of £378 in time for Christmas, figures reveal.
The windfall is through the government's Help to Save account - a scheme launched in 2018 to encourage those on the lowest incomes to save money.
The account, which allows you to save up to £50 a month, effectively doubles what you put in - so for every £1 saved, you earn a bonus of 50p.
Each account lasts for four years - which means savers could find themselves with a tax-free sum of £1,200 by the time it closes.
Now, the first bonus payment has been paid to savers who created an account and started saving money two years ago. This money will be paid directly into the account holder's chosen bank account before the end of the year.
Karl Khan, at HMRC, said: "Help to Save rewards regular savers and the bonus payments can make a big difference to individuals and families.
"We’ve tried to make it as easy as we can for people to check if they qualify. It only takes a few minutes online – just search ‘help to save’ on GOV.UK."
Once savers who have received their bonus payment this month they can continue to use the savings account to receive their final bonus in 2022.
However, those who chose to close their account will out miss the next payout and will not be able to open a new account.
Eligible customers who have not already opened a Help to Save savings account can apply via GOV.UK.
Am I eligible for a Help to Buy account?
You may qualify for a Help to Save account if any of the following rules apply:
- You are in receipt of Working Tax Credits
- You are entitled to Working Tax Credit and receive Child Tax Credits
- You currently claim Universal Credit and earned £604.56 or more in your last assessment period.
