Nationwide get Britain saving with account prize draw | moneyfacts.co.uk

nigel woollsey

Nigel Woollsey

Online Writer
Published: 18/02/2020

Nationwide Building Society has today launched a new type of savings account featuring a regular prize of £100, aimed at those who struggle to save on a regular basis.

‘Start to Save’ is an online, instant access regular savings account that allows consumers to save up to a maximum of £100 per month – with the incentive that those savers who grow their balance month-on-month by a minimum of £50 will be eligible to enter a prize draw.

The Start to Save account is aimed at encouraging people who have the means to save at least a small amount but aren’t doing so for whatever reason. It forms part of Nationwide Building Society’s PayDay SaveDay initiative, which aims to encourage people in Britain to save something – even a small amount – on the day they are paid.

With more than 11 million people in the UK who currently have less than £100 put aside for a rainy day, the Government is keen to get people saving again. The UK Strategy for Financial Wellbeing is hoping to get two million more people to become regular savers.

The Government is currently running its own ‘Help to Save’ scheme, where people who are receiving Working Tax Credit, entitled to Working Tax Credit and receiving Child Tax Credit or certain people claiming Universal Credit can get a bonus of 50p for every £1 they have saved over four years.

Halifax is also running a prize draw for savers, but consumers must have £5,000 or more saved to take part. Each month, prizes from £100,000 to £100 are awarded.

Start to Save account

The Start to Save account pays 1.00% AER/gross (variable) yearly, is available to all UK savers and can be opened via Nationwide’s website using the Internet Bank or mobile app with a minimum deposit of just 1p.

Nationwide’s prize draw will be held quarterly, with the first on 21 July this year, followed by draws on 21 October 2020, 22 January 2021 and 23 April 2021. Each draw will offer prizes of £100, with the total prize fund for each draw being 1% of the total balance increase across all qualifying Start to Save accounts in the three months leading up to the draw.

As a result, the chances of winning are dependent on saving behaviour, so the more that people save, the bigger the prize fund and the more prizes on offer.

Savers can withdraw funds at any time. However, if any money is taken out during a calendar month, some or all of it may need to be paid back into the account to be entered into the prize draw.

Unfortunately, Start to Save will not be available in Northern Ireland due to the way prize draws are regulated there, but Nationwide is currently looking at alternative options.

24 months after opening, the account will be moved onto the Nationwide’s Instant Access Saver product, with no further deposit restrictions.

Rachel Springall, finance expert at Moneyfacts.co.uk, said: “It’s fantastic to see Nationwide determined to encourage consumers to start saving. At the moment, consumers may prefer convenience over interest when it comes to saving a nest egg, so it’s positive to see that the Start to Save account will allow access and encourages the savings habit.

“The prize draw may well be appealing as some savers may feel more inclined to save with the chance of winning a prize, similar to how premium bonds from NS&I are seen as an attractive choice.
“Savers will need to abide by the terms of saving regularly to be eligible for entry into the prize draws, but overall this should result in consumers saving more than perhaps they intended.”

To see what other deals are out there for new savers try our easy access savings account comparison charts.

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.

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