Couples could save up to £252 a year thanks to a not-well-known tax benefit from HM Revenue and Customs (HMRC).
Married individuals are being encouraged to use HMRC’s online calculator to determine whether they are entitled to Marriage Allowance.
This particular benefit allows couples to make big savings by transferring a portion of one partner’s tax-free allowance to the other.
To be eligible for Marriage Allowance, one partner’s income has to be under the £12,57 threshold.
The other partner must have an income between £12,571 and £50,270 or £43,662 if they live in Scotland.
Read more… HMRC offers £1,200 extra bonus to people with savings – how to apply
It should be noted that eligible married couples can also apply for backdated payments for up to four previous tax years.
This could feasibly amount to households receiving over £1,000 worth in savings thanks to Marriage Allowance.
In light of this, experts are encouraging families to be smart with what they do with this sizable cash boost.
Lucinda O’Brien, an expert at money.co.uk savings accounts, broke down the clear benefits of Marriage Allowance in bolstering peoples’ savings.
She explained: “Marriage Allowance can be a hidden financial gem for thousands of couples, however, retirees, caregivers, or people with part-time or low-paid jobs may not know they can claim.
“Thanks to the HMRC’s handy online calculator, it takes just a matter of seconds to find out if you’re eligible for a £252 annual boost. But if you are, where is the best place to put your savings?
“If you simply want to save without a specific goal, consider building up a nest egg with an easy access account, which provides competitive rates while allowing quick deposits and withdrawals.”
The savings expert also shared examples of some savings products households should consider putting away their Marriage Allowance money in.
Ms O’Brien added: “The Cynergy Online Notice Saver account offers users a strong 5.55 percent rate, but remember that there is a 120-day notice period to access the funds.
“For those in a stronger financial position with long-term savings goals, a fixed rate bond can provide you with the best interest rates, although you must be prepared to lock your money away for a longer period of time.
“For example, the Union Bank of India’s one-year fixed-rate savings account offers an excellent 6.05 percent rate, however, it comes with a one-year fixed-term deposit, meaning you cannot get easy access to your funds.”
