The Government has recently created a new pilot PrizeSaver scheme. It works much like Premium Bonds only on a smaller scale where savers can win £5,000 from just £1. Enable’s IFA’s can see that it is aimed at trying to reward savers with the chance of a monthly cash prize. If it proves a success the ‘PrizeSaver’ scheme will be expanded.
Currently, PrizeSaver is only available through 15 credit unions across the country. When a saver opens an account with one of those unions they will be entered into a draw, with a top prize of £5,000 handed out each month. Like with Premium Bonds smaller prizes are also handed out.
Accounts can be opened now, with the first prize draws set to take place in the middle of December. You can open them for as little as £1. If you win, you’ll be notified within 21 days of the prize draw taking place. All savings will be covered by the Financial Services Compensation Scheme, so your savings are safe up to £85,000.
The bonus is that unlike Premium bonds you will earn interest on the money in the accounts as well. Interest rates will vary depending on the credit union. The scheme is designed to try to increase awareness among savers of credit unions as an alternative place for people to save or borrow, particularly for people who may not meet the criteria of high street banks and building societies.
This initial pilot is set to run until the end of March 2021, and if it’s deemed a success the idea is that it will be offered more widely. There are the 15 participating credit unions, each of which has its entry criteria. 1st Alliance Credit Union, Bradford District Credit Union, Central Liverpool Credit Union, Clockwise Credit Union, Commsave Credit Union, East Sussex Credit Union, Merthyr Tydfil Borough Credit Union, Nottingham Credit Union, Plane Saver Credit Union, Police Credit Union, Riverside Credit Union, South Manchester Credit Union, Westcountry Savings and Loans.