A NEW government savings account will help more than 100,000 people on low incomes by rewarding savers with an extra 50p for every £1 they save.

Help to Save is aimed at helping people on low incomes to build up a ‘rainy day’ fund, and at encouraging savings behaviours and habits.

The account is available to working people on tax credits and universal credit.

Account holders can save between £1 and £50 every calendar month and accounts last for four years.

After two years, savers get a 50 per cent tax-free bonus on savings. If saving continues there is another 50 per cent tax-free bonus after four years.

On maximum savings of £2,400 over 4 years, the overall bonus would be £1,200.

Nicola Brooks, from Newport, is taking part in the scheme. She said: “My motor mobility vehicle is renewed every three years and so by the time Help to Save is finished I can use the money as a down payment.

“It was really easy to use and apply. It popped up on the HMRC app, took you through it and didn’t ask any complicated questions.

“I would recommend it because of how easy it was to use and the bonus. Unlike normal banks which are easier to dip into with normal interest rates, with Help to Save you can just let it build up, making me a better saver.”

To apply, visit www.gov.uk/helptosave or use the HMRC app.

View an animation on Help to Save at: https://youtu.be/ryQ_JHayKoE