The Gateway Savings Scheme

Gateway Savings Account

Chancellor Alistair Darling announced ‘The Savings Gateway Scheme which will be introduced in 2010. It is a state-funded saving scheme to help lower income families to start saving.  It is part of the Governments long-term plan to support individual savings, it originally started with the launch of the Isas, Child Trust Funds.

This scheme is primarily aimed at helping low income families to start saving if they are in receipt of Working Tax Credits, Child Tax Credits paid at the maximum rate, income support, incapacity benefit or Employment Support Allowance, Severe Disablement  allowance and Jobseekers Allowance. The Chancellor said it will be available to around eight million people.

The Savings Gateway Scheme will be available through a range of banks, building societies and credit unions as well as the post office. The scheme will allow a maximum monthly saving of £25 and is designed to encourage those with modest incomes to start saving. It is aimed to run along side other tax-free saving plans like, Isas for those with higher earnings and Child Trust Funds for Children.

The Government has said they will give 50p for every £1 saved to a maximum of £25 per month.  The government will add the bonus to savers accounts after two years. Example: save £25per month for two years and you will have £600, the government will then boost your £600 to £900.

This certainly is a nice little earner and is money for free. If you qualify for this then you should not walk past this little gem of a saver. Your thoughts, experiences and comments are welcome. Just CLICK on the green coloured COMMENT bar below and Leave your thoughts or experiences today!