POT OF GOLD
Martin Lewis explains how to get 50% interest on savings – but you need to get Universal Credit or benefits
MARTIN Lewis is urging hard-up Brits to apply for a government savings scheme, which offers a 50 per cent interest rate on your cash.
It could come in handy as savers have suffered from dismal rates for a decade, but not everyone will qualify.
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In yesterday's episode of ITV's Martin Lewis Money Show, the money guru urged eligible Brits to apply for the so-called Help to Save scheme.
The initiative, which launched in 2018, allows over 3.5million people to put away up to £50 a month for four years.
At the end of two years, they'll get a bonus of 50 per cent on their balance and then another one at the end of the four years.
That means those who've put away the maximum £2,400 over the four years will get a hefty bonus of £1,200 tax-free.
"Frankly, it's totally unbeatable if you're eligible," Martin said.
How to apply for the Help to Buy Scheme
HERE'S all you need to know about the savings scheme.
You can open a Help to Save account if you’re any of the following:
- receiving Working Tax Credit
- entitled to Working Tax Credit and receiving Child Tax Credit
- claiming Universal Credit and your household earned £569.22 or more from paid work in your last monthly assessment period
If you get payments as a couple, you and your partner can apply for your own Help to Save accounts but you need to apply separately.
You also need to be living in the UK. If you live overseas, you can apply for an account if you’re either a:
- Crown servant or their spouse or civil partner
- member of the British armed forces or their spouse or civil partner
You can apply on the .
You need a Government Gateway user ID and password to apply. If you don't have a user ID, you can create one once you apply.
Yet a majority of eligible Brits are missing out by not applying, according to figures released in August.
The second best interest rate savers can get is by opening a Lifetime Isa, which lets you save up to £4,000 per year, Martin said.
It pays out a bonus of 25 per cent (up to a maximum of £32,000) if you use it towards your first home worth under £450,000, or towards retirement once you're over the age of 60.
Just keep in mind that you can only open one if you're aged 18 to 39, and if you want early access you'll pay a 25 per cent penalty on the amount withdrawn.
The top account is currently offered by Moneybox, which offers 1.4 per cent on your savings.
If you're keen to save more, or if you don't qualify for either of the two schemes, the key interest rate to look at is currently 1.35 per cent.
Martin said: "Check now what you're being paid, if it's anything less than 1.35 per cent it's time to ditch and switch."
This is how much the current market-leading easy access account - Marcus By Goldman Sachs - is paying.
But you can earn even more if you're prepared to lock away some money away.
Martin added: "If you can lock your money away to get a guaranteed rate, you may as well."
The top one-year fix by FirstSave currently pays 1.7 per cent in interest, the top two year deal by Secure Trust Bank pays 1.86 per cent, or you can make 2.10 per cent by leaving the money alone for five years at UBL.
We've made a round-up of the best savings accounts here.
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Earlier this month, Martin Lewis warned that 11million households are overpaying on their energy bills.
While last month, he also urged pensioners and households on low income to check if they can get £140 off their energy bills this winter.
Martin has also explained his seven New Year money-saving resolutions to help you save THOUSANDS of pounds.
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