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  • FIRST POST
    • MSE Megan F
    • By MSE Megan F 12th Sep 18, 1:45 PM
    • 356Posts
    • 173Thanks
    MSE Megan F
    Savings scheme for those on low incomes gives up to £1,200 bonus - MSE News
    • #1
    • 12th Sep 18, 1:45 PM
    Savings scheme for those on low incomes gives up to £1,200 bonus - MSE News 12th Sep 18 at 1:45 PM
    A new savings scheme which gives up to a £1,200 bonus to people on low incomes has been launched - but MSE founder Martin Lewis has warned there's a risk it could lead to people mis-prioritising their finances...
    Read the full story:
    'Savings scheme for those on low incomes gives up to £1,200 bonus'

    Click reply below to discuss. If you havenít already, join the forum to reply.
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Page 2
    • benj111
    • By benj111 14th Sep 18, 1:29 PM
    • 32 Posts
    • 15 Thanks
    benj111
    If anyone is having problems understanding this, just view it as a 2 year bond, optionally extendable for another 2 years.
    You can withdraw your money at any time, and the bonus will be paid on the highest balance. Theoretically you could pay in £50 today, withdraw it tomorrow and still get a £25 bonus in 2 years (please don't take my word for this exact scenario).
    The only gotcha is if you do choose to extend it to the full 4 years, the bonus is only paid on the balance over and above what was paid in the first bonus.
    eg you save £50 every month for the first 2 years saving £1200, your first bonus is paid on this (£600). If you then save £50 for another 2 years you would then have saved £2400. Your bonus will still only be £600 because it will be only be paid on the extra £1200.
    What this means is, if after the first 2 years you withdraw your £1200, you may as well close the account, because you won't be able to save enough to get back above your original high watermark balance.

    Account set up was very easy, If you already have a gov't gateway account setup, it is literally 2 clicks, and entering bank details.

    Bravo to gov't IT services for making this painless, I was expecting forms and forms and posting things.


    @vacheron
    "If are eligible for universal credit but don't claim because of pride of because you genuinely don't want to be a burden on the system, you get nothing."
    If you don't want to claim universal credit because of pride, why would you want to claim this. a hand out is a hand out.

    I do agree with your other points, if you don't have money. a 50% bonus in 2 years seems a bit abstract.
    I suspect it's more of a sop to the 'struggling' lower middle classes, but if it gets people saving....
    • BakingC
    • By BakingC 14th Sep 18, 1:53 PM
    • 39 Posts
    • 16 Thanks
    BakingC
    Once again a swing and a miss for the government claiming they are trying to help those on lower incomes. Per Martin's warnings those without much financial education might prioritise saving rather than paying off debts making them worse off, those who need help most do not have £50 a month spare to save and the number relying on foodbanks is every increasing.

    This is an even worse move than when they increased the ISA limit claiming to help those on lower income. Those on lower incomes didn't have £5k to put into an ISA let alone £20k.

    This government consistently introduces these complex and useless ways to try and help those on lower incomes without actually addressing why their income is so low in real terms e.g. higher inflation, no real wage growth, a minimum wage that is below what everybody says is a "living" wage, unaffordable housing
    • benj111
    • By benj111 14th Sep 18, 2:41 PM
    • 32 Posts
    • 15 Thanks
    benj111
    @BakingC
    I have to say I'm quite annoyed and disappointed at Martin for saying that. Click on the 'Deals' tab up above, is he worried people will prioritise saving 40% off at Frankie and Benny's rather than saving or getting out of debt? Are ISAs encouraging people to save rather than get out of debt? should interest rates be raised or lowered to encourage people to pay off debt, rather than save?
    I find it patronising, and just means you can criticise the government for anything that encourages saving.
    • Milarky
    • By Milarky 14th Sep 18, 4:28 PM
    • 6,271 Posts
    • 2,206 Thanks
    Milarky
    This government consistently introduces these complex and useless ways to try and help those on lower incomes without actually addressing why their income is so low in real terms e.g. higher inflation, no real wage growth, a minimum wage that is below what everybody says is a "living" wage, unaffordable housing
    Originally posted by BakingC
    Remember folks, this is sponsored by The Department for Looking for Things to Do, (D4L42D)
    .....under construction....
    • Roland Flagg
    • By Roland Flagg 18th Sep 18, 12:04 PM
    • 1,183 Posts
    • 421 Thanks
    Roland Flagg
    Sorry if I'm being thick or is this scheme open to people who are claiming unemployment benefit or signing on without claiming benefit for NI credit?
    • BBH123
    • By BBH123 18th Sep 18, 1:19 PM
    • 745 Posts
    • 1,438 Thanks
    BBH123
    Its either a pile of crock or a genius scheme,


    pile of crock because you have to be on a benefit to take advantage and on a benefit you should not have £50 surplus to be able to save. What about Mr & Mrs low earner without kids on £15 / 16K who really are low income household


    Genius because we get the PR stunt of offering something to the poor knowing full well the uptake wont be that great.
    Save 12k in 2018 challenge #14
    3700/ 10000

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    #15 120/365
    • cashbackproblems
    • By cashbackproblems 18th Sep 18, 3:33 PM
    • 1,774 Posts
    • 688 Thanks
    cashbackproblems
    What a great scheme for benefit fraudsters, nice little extra earner.

    Most genuine benefit claimants wont be able to save this amount!
    Originally posted by dealer wins

    Agreed the Tories are becoming like a socialist party rewarding laziness and tax cheats
    • libra10
    • By libra10 18th Sep 18, 4:29 PM
    • 10,511 Posts
    • 211,591 Thanks
    libra10
    This scheme seems great for those who are eligible.

    However, I have a relative, who is single, working full time on low wages, and because he doesn't receive benefits, he is unable to take advantage of this scheme.

    Doesn't seem fair to me.
    • alewin
    • By alewin 18th Sep 18, 7:29 PM
    • 79 Posts
    • 113 Thanks
    alewin
    those who need help most do not have £50 a month spare to save
    Originally posted by BakingC
    You don't have to save £50 a month, thats the maximum you are allowed to save.
    You could just save £10 or £20 or a fiver, save whatever you can and you'll receive a 50% bonus on the highest balance.

    If you need to money, just withdraw. It's not locked in.
    • sunshine81
    • By sunshine81 19th Sep 18, 7:45 AM
    • 1,238 Posts
    • 6,385 Thanks
    sunshine81
    Wow the 'stereotypers' are out in force...

    I'm not lazy, nor a tax cheat, nor a benefit fraudster, nor poorly educated. I'm eligible for this scheme as I receive working (yes WORKING) tax credits and child tax credits. I work full time for the NHS and have two young children who need childcare while I work... Their dad decided he was going to be a pick and mix parent and left us two years ago.

    I'm going to utilise the scheme and save the £50 a month, which I'll raise either by selling something or making cuts somewhere else in the month.

    No scheme ever suits anybody, every scheme is not for everyone... I'm grateful this one fits me and will give my house deposit saving a boost.
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