New savings scheme for those on low incomes launched

woman using mobile phoneA new government savings scheme, Help to Save, offers working people on lower incomes a 50 per cent bonus, rewarding savers with an extra 50p for every £1 saved.

Over a four-year period, a maximum saving of £2,400 would result in an overall bonus of £1,200.

The idea is to help those on lower incomes build up a rainy day fund. How much is saved and when is up to the account holder, and they don’t need to pay in every month to get a bonus.

Help to Save is available to working people on tax credits and universal credit.

You can check your eligibility via the government's Help to Save page, or by using the HMRC app.

Read more: Money Saving Expert