PrizeSaver anyone?

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colsten
colsten Posts: 17,597 Forumite
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I don't think I have seen anything about PrizeSaver on this forum yet (happy to delete this if I am wrong).

It looks a bit like a cut-down version of Premium Bonds, with the cost of a "ticket" being lower than PBs, and also prizes being lower. The accounts are savings accounts with some Credit Unions, who might pay a bit of interest, too. Deposits might be guaranteed under FSCS but you'd have to reconfirm this with the respective CU.

Has anyone looked into it, or started putting some money into it? If so, with which CU?
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  • Zanderman
    Zanderman Posts: 4,697 Forumite
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    New one to me - which, as a fan of credit unions, I shall read about now...

    First impression btw, is that whilst PrizeSaver is an interesting concept it's a shame that some of the credit unions listed do not make their common bond very obvious.

    This is one of the odder things about CUs - you'd think, as joining them is restricted to people within their 'common bond', that they'd make details of that common bond absolutely obvious upfront, but for many you have to search quite hard for it. Weird.
  • Zanderman
    Zanderman Posts: 4,697 Forumite
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    And, having looked at the participating CU's I find none that I could join so an interesting concept but not one I can try!

    For those who want a quick guide the participating CUs are (with my annotations on their common bond):

  • colsten
    colsten Posts: 17,597 Forumite
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    Many thanks, Zanderman, superb work! It's a shame none of them are suitable for you. I had just gone through all of them myself, too, and struck lucky (so I hope) with the London Capital CU. When they launch their PrizeSaver, I'll stick £200 in, then wait for my prize :p
  • Zanderman
    Zanderman Posts: 4,697 Forumite
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    Another snippet of help to anyone looking into this - this is, I think, the wording from the official media announcement (this is the version released by the West Country CU, so only mentions them specifically):
    CHANCE TO ‘WIN WHILE YOU SAVE’ WITH NEW CREDIT UNION PRIZE ACCOUNT
    Treasury launches pilot of new PrizeSaver account on International Credit Union Day
    Savers who put away as little as £1 with participating credit unions have chance to win up to £5,000 a month
    Account is part of work to raise awareness of credit unions and encourage greater saving for the future
    Savers could now win up to £5,000 a month with the launch of a new account with credit unions today (Thursday 17 October).

    To mark International Credit Union Day, the Treasury has teamed up with 15 credit unions across Britain to launch the new PrizeSaver pilot account. The pilot will give people who open an account with participating credit unions the chance to win prizes every month and boost their savings.

    Every month will see a top prize of £5,000 awarded to the winning saver, with a further 20 smaller prizes of £20 also awarded. Accounts are available now with the first wave of credit unions and the first prize-draws will take place in mid-December.

    The pilot, announced at last year’s Budget, is designed to help improve people’s financial resilience by encouraging greater saving for the future, as well as raise awareness of credit unions and the services they offer.

    The Economic Secretary to the Treasury, John Glen, said:
    “We all know that saving for the future is important and I want to make it is as easy and attractive for people as possible.

    “That’s why we’ve teamed up with Westcountry Savings and Loans, on International Credit Union Day, to launch the new PrizeSaver account pilot, giving people the chance to win up to £5,000 on their hard-earned savings.

    “Credit unions provide an invaluable service for people up and down the country and I’m pleased that together we can give more people the chance to win while they save.”Credit unions are a type of member-owned cooperative, controlled and run by members. Most either serve specific local areas or certain professions like the police. Credit unions redistribute their profits to members through interest or dividends, or by investing in new services to meet the needs of their members.

    Fintech company incuto was appointed by the Treasury earlier this year to administer the pilot and work with credit unions to ensure they can operate the account. The move is part of the government’s drive to use innovative UK fintech companies to boost financial inclusion.

    The PrizeSaver pilot is designed to encourage new and existing credit union members to save, starting with as little as £1 a month. The pilot also aims to attract new members to credit unions, who play a vital role in financial inclusion in particular as an alternative to high-cost lenders.

    The account is partly inspired by the ‘Save to Win’ scheme in the US, which has helped credit union members save $200 million and has awarded $3.1 million in prizes nationwide.

    The pilot will run until the end of March 2021 and will help inform understanding of the PrizeSaver model. The Treasury will work with participating credit unions to evaluate the success of the PrizeSaver accounts throughout the pilot, with an ambition to roll the account out more widely if successful.
  • masonic
    masonic Posts: 23,475 Forumite
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    This is tempting, and it looks like there is an option available to me (albeit with a joining fee). But with no idea about my odds of winning a prize I'm in two minds.
  • colsten
    colsten Posts: 17,597 Forumite
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    As you can only have max 200 tickets, it's just £200 parked for a while. If you have to pay a joining / membership fee, you might get that back in the form of interest or dividends. And there's the prospect of winning a multiple of your fees. Win chances are difficult to work out without knowing how many entries will be in each draw but they will be higher in the beginning if people don't pile in in their thousands.
  • masonic
    masonic Posts: 23,475 Forumite
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    Well I figured I'd take the plunge. I'm quite impressed so far, I already have a membership number and online access. Providing I win at least one £20 prize in the first 4 years I'll be quids in :D
  • colsten
    colsten Posts: 17,597 Forumite
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    Which CU did you go with?

    Ref the 4 years - - the scheme might not run that long. It's a pilot running until sometime in 2021 for now, I believe.
  • quirkydeptless
    quirkydeptless Posts: 1,219 Forumite
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    Thanks. I've found one CU I'm eligible for, so seems worth a punt for £200
    Retired 1st July 2021.
    This is not investment advice.
    Your money may go "down and up and down and up and down and up and down ... down and up and down and up and down and up and down ... I got all tricked up and came up to this thing, lookin' so fire hot, a twenty out of ten..."
  • masonic
    masonic Posts: 23,475 Forumite
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    colsten wrote: »
    Which CU did you go with?
    I've gone with the Notts one.
    Ref the 4 years - - the scheme might not run that long. It's a pilot running until sometime in 2021 for now, I believe.
    Yes, I'm aware it's a short term pilot. Hopefully it won't be pulled before I win a prize!
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