DEAR TRICIA
Need some practical financial advice? YOUR MONEY Editor Tricia Phillips and her team can help
Q I believe the Government has launched some kind of new Help to Save scheme. Is this available for everyone or do just certain people qualify?
A It is a type of savings account for low earners. It allows people entitled to Working Tax Credit or receiving Universal Credit to get a bonus of 50p for every £1 they save over four years. The maximum those eligible can save is £50 per month.
Q I’m recently divorced. Is it right that single people get a discount on their council tax? If so, will this happen automatically or do I need to apply?
A If you are the only adult living in your property your Council Tax will be reduced by 25%. You will need to apply for the single person discount online. You’ll need to input your council tax reference number, which you can find on your bill.
Q I’m really confused about my Help to Buy ISA. Is it still relevant and will I still be able to use it towards a house purchase in a few years time – I reckon it will take me around five years to get the deposit I need.
A Yes, you can continue to save into a Help to Buy ISA until November 30, 2029. You must then buy your house and claim your bonus on or before December 1, 2030, so you have plenty of time to keep saving up. These ISAs won’t be available to new savers after November 30 next year – from then on savers will be able to get similar help via a Lifetime ISA.
Q We want to put money aside for our grandchildren. Can we set up savings accounts in their names, and can we set an age when we’d like them to be able to access the money?
A You can. You could consider a tax-exempt savings plan offered by Friendly Societies. You can apply and set a fixed term (typically more than five years), although you will need a parent’s permission to do so.
Q I have more than £85,000 in savings. I’m currently earning virtually no interest and have found out that not all my money is protected under the Financial Services Compensation Scheme. Is there anything else I could consider for my cash which offers more return and a higher level of protection?
A National Savings & Investments has no FSCS upper limit, and it has various products such as cash ISAs, Premium Bonds, plus Growth and Income Bonds, offering slightly better than nothing returns. If you want to keep all your savings under one roof NS&I may be worth considering.