You are here: Home - Saving & Banking - News -

Natwest launches new £1,000 prize draw for savers

Written by: Emma Lunn
NatWest has unveiled a new competition for savers, offering the chance to win £1,000 cash prizes for saving just £3.

The competition is open to savers with Natwest or Royal Bank of Scotland who open a Digital Regular Saver account in August, and save between £1 and £50 in September, October and November.

Qualifying savers will be entered into a draw which will take place in December. 10 winners will walk away with a £1,000 prize.

NatWest and RBS’s competition is only for new savers, and follows a similar competition earlier this year for savers who opened an account in March.

How does a regular saver work?

Regular saver accounts are designed to get people into the savings habit, as you have to commit to put a certain amount aside each month. In return you then enjoy a decent rate of interest, before the account ‘matures’ ‒ usually after a year ‒ and you receive the money plus interest you’ve saved, to do with as you please.

NatWest’s Digital Regular Saver pays a rate of 3% on balances of up to £1,000, and is only open to those who have a current account with the bank. The interest rate drops to 0.01% AER on balances of more than £1,000.

Unusually, the Digital Regular Saver actually allows you to withdraw money from the account without having to close it. Many regular savers don’t permit you to make any withdrawals at all, with savers instead forced to close the account and sacrifice the interest if they need to get their hands on their cash.

Winning a prize by saving

Getting a decent return on your savings is not that easy in the current low interest rate environment, so the lure of potentially winning a cash prize on top of any interest paid can be particularly powerful.

For example, Premium Bonds don’t pay any interest at all but instead runs monthly draws with winners bagging a £1m prize. While more than 21 million people hold bonds, savers have started to look elsewhere in recent months after National Savings & Investments ‒ the government-backed bank which runs the bonds ‒ slashed the prize rate.

Halifax runs its own monthly prize draw, which is open to anyone with savings of £5,000 or more in qualifying accounts. There are three top prizes of £100,000, 100 prizes of £1,000 and 1,500 prizes of £100.

Nationwide has also launched its own scheme aimed at encouraging people to get started with saving, called Start to Save. The Start to Save account pays 1% interest, and in order to qualify you have to pay in between £50 and £100 in each of the three months before one of its quarterly prize draws.

The number of winners for each draw will vary, based on the prize fund, which is calculated as 1% of the total increase in balances in qualifying accounts for the three months before the draw.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Unfamiliar banks woo savers with top rates…is your money safe?

If you’ve been keeping an eye on the savings best buy tables, you’ll have noticed some unfamiliar names lu...

What the base rate rise means for you

The Bank of England has raised the base rate by 0.25% to 0.5% – following on from the increase from 0.1% to ...

How to get help with your energy bills

The rise in the energy price cap from April will mean millions of households will pay hundreds of pounds a yea...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week