Could you get lucky with a lottery-style savings account?

Could you get lucky with your savings deal? Three major banks now offer lottery-style accounts – but it may not pay in the long run

  • NatWest, Nationwide and Halifax all offer lotteries
  • NatWest’s new account pays 3% on up to £50 a month and pays a prize of £1,000
  • Nationwide’s lottery has paid out £265,900 in prizes to over 2,000 savers

With interest rates close to zero, a savings account that offers the chance to win big is sorely tempting – but it may not pay in the long run.

Three major banks and building societies now offer a lottery-style savings account.

Like much-loved Premium Bonds, you are entered into a prize draw each month, with any winnings tax-free.

Try your luck: Three major banks and building societies now offer a lottery-style savings account

Some – such as NatWest’s new deal launched earlier this month – promise a modest interest payment on top. To be eligible, savers must be a current account customer and open NatWest’s Digital Regular Saver by midnight tonight.

They must then deposit between £1 and £50 in April, May and June to qualify for a draw in July. 

There will be ten prizes of £1,000 each. And the bank says the odds on winning will depend on how many sign up this month.

Savers will also earn 3 per cent on their first £1,000. But while this looks attractive, it works out to just £9.75 in interest if you save the maximum £50 every month for a year.

Nationwide launched its prize draw offer in February last year, offering £100 giveaways.

So far the building society has attracted 245,500 savers and handed out 2,659 prizes worth £265,900.

You have between a one-in-34 and one-in-67 chance of winning. You will also earn 1 per cent on your savings – worth up to a maximum of £6.50 a year.

Halifax introduced its prize draw nearly ten years ago. You need to hold £5,000 in a qualifying savings account and register. So far it has paid out £57 million to 105,000 savers.

The odds on winning are unknown – but, every month, more than 1,600 savers have the chance to win between £100 and £100,000. 

There are 1,500 prizes of £100, one hundred of £1,000 and three of £100,000. You will also earn up to 0.05 per cent in interest.

Post Office Money also has a scheme open until the end of April for those who deposit £1,000 in savings. There is a top cash prize of £10,000, four of £2,500 and 200 of £100.

Smaller societies with prize draws include Family BS’s Windfall Bond and Hanley Economic’s Potteries Prize Saver.

The most popular prize draw savings account is National Savings & Investments’ Premium Bonds, with monthly prizes of between £25 and £1 million. 

You can put in between £25 and £50,000. The odds of winning are 34,500 to one for each pound.

Rachel Springall, finance expert at Moneyfacts, says: ‘We could see more prize draws enter the market, but it’s important that customers compare deals carefully. There is no guarantee of winning a prize.’

Savings accounts