Savings Gateway- state supported saving scheme.

Sideways

Reading through the details of yesterday's PBR, I spotted this-


"A new state supported saving scheme - known as the Savings Gateway - will be launched, in which the government will contribute 50 pence for every pound saved.
The government has been pondering this since 2001 and it will now start in 2010, targeted at 8 million people on low incomes. The idea is that people on benefits or tax credits will be able to open Gateway accounts at the Post Office as well as banks and building societies."

Tax Credits? My wife & I have a combined income of just over 40k but we still qualify for Child Tax Credits, not a lot but something. I wonder if we would be offered one of these savings accounts? I quite like the idea of someone adding 50p for every pound I put in.

Thats quite an attractive 'Interst Rate'.

Lokolo

http://forums.moneysavingexpert.com/showthread.html?t=1309973

Its upto 50p for £1

Individuals in receipt of the following benefits and tax credits will be entitled to open
an account: Working Tax Credits; Child Tax Credits paid at the maximum rate; Income
Support; Jobseeker’s Allowance; Incapacity Benefit; Employment and Support Allowance
and Severe Disablement Allowance.

You won't get it unless you get the maximum rate of Child Tax Credits.

Sideways

Drat!!!!!!!!!!!!

Lokolo

Sideways wrote: »

Drat!!!!!!!!!!!!

Yes thats what I thought. My student loan of around £3500 could have been put in there and as I am on no income (well very little, £1 or £2k) it would have been nice

fizzypop

It's only £25 max per month for two years upto max of £375 and does not start till 2010. What bank will waste time setting up this pathetic savings scheme. As with most things with Labour too little too late. As regards what £25 will be worth in two years who knows. This will be quietly dropped after the election by the new government and rightly so.

fullstop

fizzypop wrote: »

It's only £25 max per month for two years upto max of £375 and does not start till 2010. What bank will waste time setting up this pathetic savings scheme. As with most things with Labour too little too late. As regards what £25 will be worth in two years who knows. This will be quietly dropped after the election by the new government and rightly so.

It was first mooted in 2001!!!!!

Quietgirl

yes i had one back then too!

Baldur

fullstop wrote: »

It was first mooted in 2001!!!!!

There has already been at least one limited pilot scheme run, from 2005 to 2007.