The Halifax is to partner the Government in operating its Savings Gateway scheme, aimed at lower inc...
The Halifax is to partner the Government in operating its Savings Gateway scheme, aimed at lower income earners.
The specially created savings vehicle, which was first proposed last year, is aimed at encouraging people to save via matching contributions from the Government. The vehicle will be cash deposits and there will be no potential to invest in equities or other investment types.
August will be the launch date of the Government's planned Saving Gateway pilot projects, which are expected to begin in four pilot areas, South-east Manchester, Tower Hamlets (East London), Cumbria and Cambridgeshire. The pilots are to run for two and a half years.
Halifax will provide the services of its branches, staff and account systems in the pilot areas.
Subject to the results of the pilot schemes the Government is planning to embark on, the level of matching contributions will be set at £1 for £1 saved, up to a limit of £25 a month. Matching contributions will last for five years from the opening of the account and there will be an overall cap on the total amount of available matching of £1,000.
Withdrawals of contributions are possible but matched contributions are locked in for the lifetime of the product.
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