Is it worth putting savings into a prize draw | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 11/06/2021

The launch of Nationwide’s Member Prize Draw last month caught many savers attention with the promise of being entered into a monthly prize draw for 12 months. While many savers will be attracted to the chance of being able to win money each month, this is not the only prize draw savings account on the market. Savers considering this option should think about whether it is the best place to put their hard-earned savings and what prize draw option is best for them.

What prize draws are available?

Nationwide’s Member Prize Draw is just one of several of prize draw options available to savers. Here we’ve outlined some of the most popular ones available.

Nationwide Member Prize Draw

Nationwide’s Member Prize Draw is available to all members of the building society and to qualify for the draw they must be 18 or over and have either a Nationwide savings, mortgage or current account (other terms and conditions apply). For a 12 month period, starting in September 2021, eligible customers will automatically be entered into a monthly prize draw where 8,008 prizes are given away. These monthly prizes are:

  • One winner of £100,000
  • Two winners of £25,000
  • Five winners of £10,000
  • And 8,000 winners of £100

Nationwide currently has five savings products available in the charts whose account holder will be eligible to be entered into the prize draw:

1 Year Triple Access Online Saver 12 is an easy access savings account that can be opened without a minimum deposit and pays 0.45% AER on anniversary. Customers should be aware that the account reverts to a Triple Access Online Saver after 12 months and that if more than three withdrawals are made a lower rate is paid for the reminder of the term. It can be opened online, alternatively it can also be opened via mobile app.

1 Year Triple Access Online ISA 11 is an instant access ISA that pays 0.25% AER on anniversary. This ISA requires a £1 minimum deposit to open and can be opened online or via mobile app. After 12 months this ISA reverts to a Triple Access Online ISA. It can be opened online or via mobile app.

1 Year Fixed Rate Bond and 1 Year Fixed Rate e-Bond are both one year fixed rate bonds that pay 0.40% AER on maturity or monthly. These bonds require a £1 minimum deposit to open. The Fixed Rate Bond can be opened online or by phone, meanwhile the Fixed Rate e-Bond can be opened online or via mobile app.

2 Year Fixed Rate Bond and 2 Year Fixed Rate e-Bond are both two year fixed rate bonds that pay 0.50% AER on anniversary. To open these bonds a £1 minimum deposit is needed. As with the one year options, the Fixed Rate Bond can be opened online or by phone and the Fixed Rate e-Bond can be opened online or via mobile app.

1 Year Fixed Rate ISA is a one year fixed ISA that pays 0.40% AER on maturity or monthly. To open this ISA a £1 minimum deposit is needed. It can be opened online, by phone or via mobile app.

2 Year Fixed Rate ISA is a two year fixed ISA that pays 0.50% AER on maturity or monthly. Similar to the one year version, this ISA requires a £1 minimum deposit to open and can be opened online, by phone or via mobile app.

Halifax Savers Prize Draw

Halifax’s Savers Prize Draw is available to all savers aged 18 and over who hold £5,000 or more in a qualifying Halifax savings account or ISA (excluding accounts for children) for a whole calendar month in order to be entered into the next month’s draw. Savers need to register in order to be entered into a monthly prize draw, which can be done through the Halifax app, online banking, mobile banking or in branch.

Every month those entered into the draw have the chance of winning:

  • Three savers can win £100,000
  • 100 savers can win £1,000
  • 1,500 can win £100

Halifax currently has six savings accounts that are eligible for the prize draw, these are:

Fixed Saver, is a five year fixed rate bond that pays 0.50% AER on anniversary or monthly. This account requires a £500 minimum deposit to open. It can be opened online, in branch, by phone or via mobile app.

The two year version of Fixed Saver pays 0.20% AER on anniversary or monthly. As with the five year version, it requires a £500 minimum deposit to open and can be opened online, in branch, by phone or via mobile app.

ISA Saver Fixed is a two year fixed rate ISA that pays 0.20% AER on anniversary or monthly. A £500 minimum deposit is needed to open this ISA and it can be opened online, in branch, by phone or via mobile app.

Regular Saver is a regular savings account that pays a fixed rate of 0.75% AER on anniversary for 12 months and requires a £25 minimum deposit to open. It requires monthly deposits of between £25 and £250. The maximum investment is £3,000. The account can be opened online, in branch, by phone or via mobile app.

Everyday Saver is an easy access savings account paying just 0.01% AER on anniversary. This account requires a £1 minimum deposit to open and can be opened online, in branch, by phone or via mobile app.

ISA Saver Variable is an easy access ISA that also just pays 0.01% AER on anniversary. To open this ISA a £1 minimum deposit is needed, and it can be opened online, in branch, by phone or via mobile app.

Raisin savings platform

Raisin UK is currently offering a prize draw for those who successfully register, fund and renew accounts via its platform between 12 April and 25 June 2021 (terms and Conditions apply). Those eligible for the prize draw will automatically be entered each day for the chance to win £100. The winning prize will automatically be deposited into their Raisin UK account.

There are a number of Raisin UK savings accounts available in our fixed rate bond charts, these include:

Union Bank UK’s Raisin UK – 1 Year Fixed Term Deposit. It pays 0.85% AER on maturity and can be opened online here.

FCMB Bank (UK)’s Raisin UK – 18 Month Fixed Term Deposit. It pays 0.80% AER on maturity and can be opened online here.

QIB (UK)’s Raisin UK – 18 Month Fixed Term Deposit. It pays an expected profit rate of 0.80% AER on maturity and can be opened online here.

QIB (UK)’s Raisin UK – 1 Year Fixed Term Deposit. It pays an expected profit rate of 0.70% AER on maturity and can be opened online here.

Isbank’s Raisin UK – 1 Year Fixed Term Deposit. It pays 0.69% AER on maturity and can be opened online here.

FCMB Bank (UK)’s Raisin UK – 1 Year Fixed Term Deposit. It pays 0.65% AER on maturity and can be opened online here.

Zenith Bank (UK) Ltd’s Raisin UK – 1 Year Fixed Term Deposit. It pays 0.60% AER on anniversary and can be opened online here.

Savers should note that there are other terms available on Raisin UK deals and should visit our fixed rate bond chart to see all the products available.

National Savings & Investments Premium Bonds

One of the most well-known and popular prize draw savings account is the National Savings & Investments (NS&I) Premium Bonds. This account requires a £25 minimum deposit to open and allows savers to deposit up to £50,000 tax-free. It does not offer an interest rate, but instead savers are entered into a monthly prize draw where they can win prizes from £1 million to £25. The account can be opened via the NS&I website, over the phone or by post.

What alternative options are available to savers?

Although savings accounts that offer a prize draw can be tempting for savers, especially at a time when interest rates remain low, savers should remember that their chances of winning a prize is solely down to luck and the interest on many of these accounts are lower than the top rates available in the charts.

As such, savers may be better off choosing a savings account that offers a higher rate. For example, the highest easy access savings rate currently available in the chart that is open to new customers is 0.50% AER from ICICI Bank UK, Atom Bank, Virgin Money and Cynergy Bank.

Alternatively, long term savers who are willing to take a riskier option with the possibility of earning a better return on investment could consider putting their money into an investment. All investments come with an element of risk and can result in the investor not making any returns of their investment, as well as the possibility of losing their initial deposit as well. Saying this, some investments are riskier than others and those considering this option should speak to an independent financial advisor to discuss whether it is the best option for them. In general, investments are more suited to those planning to invest for the long-term, usually five years or more, and who already have up to six months worth of essential outgoings already in a savings account. Those considering investing can find out more information reading our guide on how to invest your money.

Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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