Nationwide Launches Prize Draw Savings Account | moneyfacts.co.uk

Derin Clark

Derin Clark

Online Reporter
Published: 29/09/2020

Today Nationwide has launched an 18 month fixed rate bond that puts savers in a prize draw for the chance to win £10,000.

Mutual Reward Bond, along with the e-bond version, requires savers to lock their money into the account for an 18 month term and pays a rate of 0.50% gross on balances of up to £10,000. In addition, savers will also be put into a prize draw, with one entry for every £100 saved up to the maximum of £10,000, for the chance to win £10,000. If savers deposit the maximum limit in the account they will have at least a one-in-200 chance of winning.

The account is available to all existing Nationwide members, but only those located in England, Scotland and Wales are eligible for the prize draw.

The prize draw is due to take place on 2 February 2021 and winners will be selected at random. The lucky winners will have the prize paid directly into an existing Nationwide account or by cheque.

Other prize draw savings accounts

The most popular prize draw savings account is National Savings & Investments’ Premium Bonds, which has a monthly prize draw where savers are in with a chance of winning amounts from £25 to £1 million. Premium Bonds do not pay interest on money deposited into the account, but the prizes are tax-free. As well as this, Premium Bonds are 100% backed by HM Treasury. A minimum of £25 is needed to open a Premium Bond and savers can deposit a maximum of £50,000.

As well as its new Mutual Reward Bond, Nationwide Building Society also offers a prize draw on its Start to Save account. This account gives savers the opportunity of winning up to £100 in its prize draws, which are due to take place on 21 October 2020, 22 January 2021 and 23 April 2021, in addition to one prize draw that has already taken place on 21 July 2020. To be eligible for the prize draw, the account balance needs to increase by £50 to £100 in each of the three calendar months leading up to the prize draw. If money is withdrawn, some or all of the amount withdrawn needs to be replaced to remain eligible.

Hanley Economic Building Society has a prize draw on its Potteries Prize Saver. Savers with this account are entered into the prize draw, which takes place each month, if the account balance reaches £5,000 on the last day of the month and for every multiple of £5,000 saved one prize draw entry is given. The monthly winner is selected on the first working day of each month and credited £500. The first prize draw took place on January 2020.

Another savings account that offers a prize draw is Family Building Society’s Windfall Bond (1). This account sees qualifying bonds entered into a monthly prize draw where savers have the chance of winning 10 prizes of £1,000, two prizes of £10,000, and one prize of £50,000.

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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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