This new savings account offers £100 prizes to regular savers

Tuesday, 18th February 2020, 11:05 am
Updated Tuesday, 18th February 2020, 11:06 am

If you're someone who finds it tricky to put pennies away each month, a new savings account offering £100 prizes to regular savers could be the push you need.

UK bank Nationwide is launching an instant-access savings account which offers savers the chance to win £100, provided they put away £50 a month.

The account, named 'Start to Save', is aimed at people who are not regular savers, or struggle to save money.

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Start to Save is aimed at young people and families who might struggle with saving (Photo: Shutterstock)

If you're already saving large amounts of money per month, it may not be for you - as the maximum deposit per month is £100.

15 per cent of Brits have no savings

The regular savings account will pay one per cent of interest on savings, and savers who deposit a minimum of £50 per month for three months will be entered into a quarterly draw for prizes of £100.

According to finder.com, 15 per cent of Brits have no savings at all. This new Start to Save account is aimed to encourage those who wouldn't normally save to put aside just a small amount each month.

Even without the prize draw, the idea is that £50 a month saved up over a few years would be a good financial buffer to fall back on, if needed.

How much could I win?

The prize fund will vary from draw-to-draw, and will be calculated at one per cent of the total increases in balance across all Start to Save accounts since the last draw.

After two years the account will change to a regular Nationwide savings account (Photo: Shutterstock)

For example, if 50,000 savers put away £50 a month each between April and June, the prize fund will be £75,000. This means 750 savers would win £100 each.

How do I open an account?

Start to Save accounts are available from Nationwide's website and banking app. An account can be opened with as little as a 1p deposit.

It is available in England, Scotland and Wales but not Northern Ireland due to laws over prize draws.

Your account will only operate for two years. After this point, savers will be reverted to Nationwide's Instant Access Saver, which pays just 0.1 per cent interest on balances under £10,000.