MARTIN Lewis has revealed a trick to earn an “unbeatable” 50% interest on your savings.
The consumer champion revealed the tip in MSE’s weekly newsletter.
Martin Lewis has revealed a trick to earn an “unbeatable” 50% interest on your savingsRex
The trick is for those on Universal Credit or tax credits and comes in the form of the Help to Save scheme.
Help to Save is a type of savings account dedicated to those on these benefits.
Under the scheme, the government gives you 50p for every £1 you save in your account over four years.
You are allowed to save between £1 and £50 each calendar month and pay the money via standing order or bank transfer.
You can then withdraw any bonus you’ve received at the end of the second or fourth year.
If you put the maximum £50 in for the four-year period it means you would get £1,200 in free cash from the government.
Recent figures have shown that millions of claimants are still missing out despite being eligible.
Writing in the latest newsletter Martin said: “Are you on Universal Credit or Tax Credits? You may qualify for an unbeatable 50% Help to Save bonus.”
He also said “nothing else comes close” and it’s “great for financial resilience”.
One fan called Anoushka also wrote in to share her success with the account.
She said: “I’m nearly at the end of my four-year ‘Help to Save’ after religiously depositing the max £50 each month.
“So I’m nearly due my 2nd £600 cash bonus. I strongly advise anyone eligible to take advantage of it and to do your best to keep up with the max.
“I’ve got used to being £50 worse off each month and the time has flown by – now I will feel ‘better off’.”
Anoushka added that “it’s quite addictive once you get used to it”.
You can open a Help to Save account if you are receiving:
Working Tax Credit
Child Tax Credit – and are entitled to Working Tax Credit
Universal Credit and you (with your partner if it’s a joint claim) had take-home pay of £722.45 or more in your last monthly assessment period
Take home pay is the amount you receive after tax, insurance, and other deductions are removed from your gross monthly salary.
If you are in a couple, you and your partner can apply for separate Help to Save accounts, but you will have to apply individually.
You will also need to be living in the UK to qualify for the scheme.
However, if you live overseas, you can apply for an account if you’re either a:
Crown servant or their spouse or civil partner
A member of the British armed forces or their spouse or civil partner
You can also carry on saving into a Help to Save account even if you come off benefits.
You can apply for an account on www.gov.uk but you’ll need a government gateway ID and password.
You can create a user ID when you apply if you don’t already have one.
Meanwhile, if you don’t have access to a computer or phone with an internet connection, you can call 0300 322 7093 to set up an account.
Other interest-boosting tricks
Martin has also compiled a list of other ways to get great interest on your savings.
One of these is the Lifetime ISA or “LISA”, which is a good option for potential first-time buyers.
There’s a big 25% bonus available via LISAs if you’re buying a first home under £450,000.
Martin said: “Apart from Help to Save it’s an absolute winner if it’s right for you.”
Another fan wrote in and said: “Another Lifetime ISA success for you – I saved for seven years and my partner six, so we got £13,000 towards our deposit from the government.”
With interest that got the pair a 20% deposit on a £330,000 property which they completed on a few months ago.
Another tip is to not turn your back on investing.
He wrote: “There’s nowt wrong with investing. With investing, you aim for higher returns but accept the risk you could lose some or all of your initial investment.
“I don’t talk about it much, not because we’re against it, just because it’s not my or MSE’s area of expertise.”
Martin added that over the longer run, he sees investing as the “right call”.
Although, he recommended doing your own research on Stocks & Shares ISAs.
He also issued a word of warning to those with any debt to pay that off before thinking about saving any cash.
Meanwhile, Martin Lewis “keeps nagging” Brits over a phone call as it will see them get £500 free cash from their energy provider.
Plus, the money expert also says everyone with a bank account can “quadruple” interest and get £1,000s a year for free with two steps.
You can also join our new Sun Money Facebook group to share stories and tips and engage with the consumer team and other group members.