The Government has recently introduced “Help to Save” which is a savings scheme that gives you a bonus of 50p for every £1 that you save.
Andrew reports, "The scheme is available to certain people who are entitled to Working Tax Credit or receiving Universal Credit. The account lasts for a period of 4-years. During that time, you can save up to £50 each calendar month or as little as £1. You then get 50% bonuses at the end of the second and fourth years, with the bonus amount depending on how much you’ve saved during that period."
Example calculation from the gov.uk website
You pay in £25 every calendar month for 2 years. You do not withdraw any money. Your highest balance will be £600. Your first bonus is £300, which is 50% of £600. In years 3 and 4 you save an extra £200 to grow your highest balance from £600 to £800. Your final bonus is £100, which is 50% of £200. Even though you withdrew some money after your balance was £800, this does not affect your bonus.
Find out more here: https://www.gov.uk/get-help-savings-low-income
