New bank plan to tempt savers
GLASWEGIANS are set to benefit from a Government bank account that rewards savers.
More than 250,000 people on low incomes will reap rewards from the Help to Save scheme that offers a 50 per cent bonus.
The account will give an extra 50p for every £1 saved, meaning over four years a maximum saving of £2,400 would result in an overall bonus of £1,200.
The launch follows an eight-month trial, with more than 45,000 customers who deposited over £3 million.
Help to Save is available to working people on Tax Credits and Universal Credit.
Paul Murphy from Glasgow, said: “I saw it was a good opportunity to save and the bonus was a good incentive.
“It’s good to encourage people to save and Help to Save has definitely got me putting in that £50 a month and not spending it.”
John Glen, Economic Secretary to the Treasury said: “Savings shouldn’t be a luxury, they are an essential part of planning for the future. But for some, putting away even a tenner each month can be a tough habit to get into. Whether you’re saving up to take the family on a much-needed holiday, or to take the next step in life, Help to Save is designed to make saving possible for every hardworking person in this country.”
Account holders can save between £1 and £50 every month and accounts last for four years from the date the account is opened. After two years, savers get a 50 per cent taxfree bonus on savings. If saving continues there is another 50 per cent tax-free bonus after four years.