Martin Lewis says Brits can earn £1,200 by starting with just £1

Money Saving Expert Martin Lewis has explained how Brits can easily earn £1,200 from the government by starting with just £1..

Help to Save is a government savings account obtainable to working people on low incomes who are entitled to Working Tax Credit or receiving Universal Credit.

This account lasts four years and for each £1 you save, the government will give you 50p on top.

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You can pay in any amount from a minimum of £1 up to a maximum of £50 a month.

So this method if you save in the maximum £50 each month for the four years you can have the account, you could end up with a bonus of £1,200.

The bonus payments are made after two years and at the end of four years, and the money you earn is not unprotected to tax.

You can save less and nevertheless get a bonus, although it will be a lower amount.

For example, if you part with £5 a month, over two years, you’ll get a £60 cash injection.

Over the four years, if you keep saving £5 a month, your total bonus would be £120.

You can only withdraw money from your Help to Save account to your bank account, and keep in mind any withdrawals you do make could affect your bonus.

Martin reminded those on benefits to check if they can claim the free cash during his Martin Lewis Money Show Live programme on ITV.

“If any of you are eligible for that you need to go for it,” he said.

“For those who are on a low income, for example you’re on Universal Credit, you can put up to £50 pounds a month, over two years. And it pays you a bonus 50% on the highest amount you have.

“So think of it like this, you put £50 if you have the money, in for a year, you’ve got £600.

“You have a problem and you need the cash, which many on low incomes might find, so you put nothing in for the rest of the two years.

“Now the highest amount you’ll have is £600, 50% of that is £300. That’s the bonus you’ll get, totally unbeatable.”

He additional: “If any of you are eligible for that. You need to go for it. That’s a big winner”.

Martin also explained how Help to Save is “unbeatable” in terms of interest rates for easy-access accounts.

These are types of accounts where you can withdraw your cash whenever you like. The best easy-access rate right now is just 0.6%.

Or if you can lock your money away, which method you can’t make withdrawals, fixed rates are better than easy-access.

The top one-year fixed rate is 1.35%, and 1.6% for a two-year fix, said Martin.

How to open a Help to Save account

Help to Save accounts were introduced by the government in 2018.

Of course, the idea of these savings accounts is that you put away any spare money you have – so they’re not really designed for those who aren’t able to make any savings at all.

But saying that, already just putting away the strange £1 here and there could soon add up over the years.

You could be eligible for a Help to Save account if you live in the UK and:

  • Receive Working Tax Credit

  • Are entitled to Working Tax Credit and receive Child Tax Credit

  • Claim Universal Credit and you (with your partner if it’s a joint claim) earned £604.56 or more from paid work in your last monthly assessment period

You and your partner can both open separate Help to Save accounts, but you’ll both need to apply individually.

You can apply for a Help to Save account via Gov.uk .

You will need a government gateway user ID and password to apply, but this is free to set up online.

For those who don’t have access to the internet, you can nevertheless get an account – just call 0300 322 7093.



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