The government has launched a new NS&I account to help those on low incomes build up a rainy day fund and encourage savings habits.
The new account known as Help to Save is available from today and can be opened until September 2023.
It will reward savers with an extra 50p for every £1 saved and means over four years a maximum saving of £2,400 would result in an overall bonus of £1,200.
The account is administered by HM Revenue and Customs and was launched after an eight-month trial, with over 45,000 customers who deposited over £3m.
It is open to UK residents who are entitled to working tax credit and receiving working tax credit or child tax credit payments.
It is also available to those claiming universal credit and have a household or individual income of at least £542.88 for their last monthly assessment period.
Payments from universal credit are not considered to be part of an individual’s household income.
Economic secretary to the Treasury John Glen says: “Savings should not 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.”