Martin Lewis urges millions to get '50% boost' on savings but there's a catch

More than half a million Brits are now eligible for a boost on their savings, following a major shakeup. Last week, the Bank of England cut its base rate (the interest rate that it charges other banks and lenders when they borrow money) from 4.5 per cent to 4.25 per cent.

The move will be welcomed by households with a tracker mortgage, with predictions their monthly payments will be reduced by around £29. However, a lower base-rate tends to be bad news for those with savings.

At the time of writing, the best savings account on the market is Trading 212's Cash ISA - which is offering newbies a 5.07 per cent interest rate*. Other savings accounts currently lie below five per cent - and could decrease even further.

However, Martin Lewis has urged Brits to check whether they're eligible for an 'unbeatable savings product' that currently offers a 'jaw-dropping' 50 per cent boost. "It's called Help to Save," the money-saving guru explained.

"I'm talking about this now as an extra 550,000 people are now eligible to open the account, bringing the total to 2.7 million. So, who can open it In a nutshell, you have to be on Universal Credit, working, and have earned at least £1 in the last month."

The expert went on to explain that opening a Help to Save account was previously reserved for Universal Credit claimants who earned at least £793. "Crucially, that's the situation you have to be in to open the account - if things change, you can keep the product." For example, if you match the criteria for a Help To Save account and open one - but then end up coming off Universal Credit or stop earning at least £1 from work, you will not lose the savings account.

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Help to Save offers Brits to earn a 50p bonus for every £1 they manage to save over four years. However, there are limits on how much you can stash away every month.

"You can save between £1 and £50 each calendar month [but] you do not have to pay money in every month," GOV UK states. "You can pay money into your Help to Save account by debit card, standing order or bank transfer and can pay in as many times as you like, but the most you can pay in each calendar month is £50."

You also won't receive the bonus straight away, and will need to wait until the end of the second and fourth year of opening your account. If you save the maximum amount (£50) every single month, you will have saved £2,400 in four years - and a staggering £1,2000 in interest.

After four years, your Help to Save account will close, and you will not be able to reopen the account (even if you remain eligible). "If you close your account early for any reason - you'll miss your next bonus and won't be able to open another one," GOV UK added.

*Trading 212 currently offers a 4.35% variable, but has a one-year 0.72% bonus for new customers.

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